Lupatech agrees to $5.7 million sale of Jefferson unit and entities

By Caroline Salls

Pittsburgh, Jan. 23 – Lupatech SA signed an agreement to sell its Jefferson Sudamericana SA subsidiary and related entities Jefferson Solenoid Valves U.S.A., Inc., Valjeff SA de CV and Jefferson Solenoidbras Ltda. to Argentinean business men Ricardo and Felipe Menendez through operational entities Jikur SA and Jatdery SA, according to a news release.

The final acquisition price was $5.7 million, with $144,000 paid at the signing, $4.28 million to be paid at closing and $1.28 million to be paid within three years of closing through the “non-materialization of eventual contingencies” claimed by the buyer, as well as the recovery of retained exports credits.

In addition, Lupatech said the agreement provides a guarantee of the $1.28 million payment, the execution of a pledge agreement of Jefferson companies’ quotas/shares in favor of the company and an insurance performance bond.

Lupatech’s board of directors approved the transaction, which is part of the restructuring of the company’s capital structure and debt and represents another step in the process of strengthening its capital position and obtaining resources for the business, the release said.

Lupatech manufactures industrial materials and is based in Caxias do Sul, Brazil. Its Chapter 15 bankruptcy case was closed in November.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.