Cuatrecasas has advised Soltec Group on the court approval of the joint restructuring plan of Soltec Power Holdings, S.A. and Soltec Energías Renovables, S.L.U. The plan enables both companies to ensure their continuity through: (i) the restructuring of their commercial and financial debt; (ii) the entry into the share capital and acquisition of control by DVC Partners via the capitalisation of part of the new financing provided; and (iii) the injection of new funding through the disbursement of fresh loans and the granting of new guarantees.
Following precedents such as Big Outlet, Telepizza and IRS, this restructuring plan allows creditors within the same class to choose between different alternatives. Specifically, in the restructuring of Soltec Power Holdings, S.A. and Soltec Energías Renovables, S.L.U., financial creditors that support the plan by providing new financing will benefit from a proportional reduction of their respective haircuts, while maintaining equality of treatment and liquidation quota. A similar mechanism has been included for trade creditors, who will face smaller write-offs if they opt to support the group by granting extended payment terms for invoices issued after court approval.
Regarding class formation, pursuant to the ruling issued by the Commercial Court of Murcia on class confirmation, a single secured class has been formed comprising different instruments backed by the same collateral, even if they represent debts of a different nature (contingent liabilities vs. actual liabilities).
The restructuring plan also extends its effects to Soltec Group guarantors that are not direct parties to the plan, not only in terms of haircuts and deferrals but also regarding other provisions, such as the deactivation of change-of-control clauses.
In addition, the plan contemplates a capital increase through debt-for-equity swap, to be implemented via the capitalisation of claims contributed by a third-party investor, who will subsequently acquire control of Soltec Group.
Under the proposal approved and confirmed by the Commercial Court No. 2 of Murcia, DVC Partners will acquire control of Soltec Group in the context of a consensual restructuring plan, which was approved unanimously across all classes and by a broad majority within each of them — with over 90% approval in all but the ordinary financial class, where support exceeded 75%.
The Cuatrecasas team advising on the transaction was led by the Restructuring group lawyers Ignacio Buil, Fedra Valencia, Patricia Álvarez, Julia Signes, Sandra Gómez, Lourdes Menéndez, Javier Aznar, Désirée Cazorla, Clara Morales and Alex Ruano, together with the Equity Capital Markets lawyers José Luis Rodríguez, Alejo Ortuño and Juan Manuel Navajas.
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