Lupatech announces subscription offer on 847 million remaining shares

By Kali Hays

New York, Sept. 16 – Lupatech SA will offer subscription rights holders the opportunity to subscribe to 847,333,785 in remaining available common shares from Sept. 17 through Sept. 23, according to a Monday news release from the company.

The subscription price will be R$0.25 per share, and the shares will be paid in cash upon subscription.

Lupatech said it reached the minimum amount in the subscription of at least 2,704,000,000 new common shares in connection with a capital increase by its previous deadline of Aug. 29 by those holders of subscription rights exercising preemptive subscription rights.

As previously reported, the capital increase was approved to allow the implementation of the company’s reorganization plan by capitalizing the credits listed in the plan.

According to the release, if any shares remain unsubscribed after Sept. 23 it will repeat the offer until all the credits held by holders of credits that have expressed themselves during the time limit to exercise preemptive rights is fully capitalized.

Once all of the unsubscribed shares are apportioned, the company’s board of directors will meet to approve a capital increase “in whole or in part in the amount of shares effectively subscribed to and paid in.”

Lupatech manufactures industrial materials and is based in Caxias do Sul, Brazil. The company filed for bankruptcy on May 23 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15 case number 14-11559.

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