ACGM Completes Successful Plan Solicitation for $220 Million Trump Ocean Club 9.5% Senior Secured Notes Due 2014
New York, NY – ACGM, Inc. (“ACGM”) announced today the successful completion of its Plan Solicitation for Newland International Properties, Corp. (“Newland”), the developers of theTrump Ocean Club in Panama City.
Following the voting deadline of April 29, 2013, Newland received 100% of all votes cast as well as a super-majority of all eligible votes in favor of the pre-packaged plan of reorganization (the “Plan”) from the holders of its $220 million 9.5% Senior Secured Notes due 2014 (the “Notes”), resulting in an accepting class as required for confirmation of the Plan under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). Newland has filed the pre-packaged plan of reorganization with the United States Bankruptcy Court in the Southern District of New York (the “Bankruptcy Court”) under the Bankruptcy Code.
A Chapter 11 reorganization is a judicial process governed under the Bankruptcy Code which provides businesses with debt relief to support a corporate rehabilitation without having to liquidate assets and cease operations. There is no equivalent process in Panama and it is not a Panamanian insolvency. Newland intends to continue normal operations during its Chapter 11 reorganization, while restructuring the Notes on more favorable terms. The Plan, including the restructuring of the Notes, is expected to have a positive impact upon Newland’s operations.
Successful consummation of the Plan will be subject to, among other things, Bankruptcy Court approval of the Plan.
AGCM acted as Plan solicitation agent and the mandate was executed by ACGM’s Investment Banking & Advisory team.
Carlos Abadi, ACGM’s President and CEO, commended ACGM’s Investment Banking & Advisory team on the success of this important transaction:
“I’m extremely pleased with the outcome of this Plan solicitation. Our in-depth understanding of this complex restructuring allowed our team to effectively articulate the Plan to Note holders and secure the support needed to meet the numbers required for the Plan’s approval. I want to especially acknowledge the diligent work of Heather Barlow and Massi Ibrahim who were pivotal in obtaining this successful outcome. Their thorough and organized approach contributed to the overwhelming response in favor of the Plan.”
Completed in 2011, the Trump Ocean Club is a 70-story luxury hotel and condominium complex that includes five swimming pools and a spa. Known for its distinctive architecture, the development is located in Panama City, capital of one the fastest growing economies in Latin America.
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Founded in 1991, Abadi & Co. is an investment banking boutique which specializes in three core areas: emerging markets, financial institutions and restructuring & special situations. By focusing on these three areas of expertise, Abadi & Co. has built a team of independent specialists–Fluent in Finance®–who serve as powerful advocates for clients, focused on protecting their financial interests and delivering practical, high-value financial solutions. The Abadi & Co. team prides itself on its ability to guide clients through difficult and groundbreaking transactions, even in situations where the structuring complexities and challenges would have thwarted others.
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