Firm Advises Oaktree Capital Management in Financial Restructuring of the SGD Group

January 14, 2010

A unanimous agreement has been reached with all the stakeholders to strengthen the financial structure of SGD and massively decrease its debt.

As reported in the international press, Willkie is representing Oaktree Capital Management in the Oaktree-led financial restructuring of the SGD Group (formerly Saint-Gobain Desjonquières), the world’s leading manufacturer of high-end glass containers for the perfume and pharmaceutical industries. A unanimous agreement has been reached with all the stakeholders to strengthen the financial structure of SGD and massively decrease its debt. The agreement, which was approved in late December by a ruling of the commercial court of Nanterre, contemplates Oaktree taking a majority stake of as much as 80% in SGD, with the remaining 20% being held by a pool of creditors. Oaktree is injecting €40 million of quasi-equity into the company. The agreement also provides for additional new money debt financing of up to €90 million. With revenue of €631 million in 2008, Paris-based SGD Group manufactures over 3 billion glass bottles annually. Based in Los Angeles, Oaktree Capital is a private equity firm specializing in less efficient markets and alternative investments.

Oaktree was assisted by a multidisciplinary team from Willkie’s Paris, Washington, New York, London, Frankfurt and Brussels offices. The team was led by Paris partner Eduardo Fernandez, and included Paris partners Alexandra Bigot and Maurice Lantourne (restructuring), Annette Péron (financing), David Tayar (antitrust), and Cédric Hajage (corporate); European counsel Jeffrey Fouts (corporate) and Philippe Grudé (tax); and Paris associates Gregory de Saxcé and Grégoire Finance (corporate), Pauline Stern (restructuring) and Julien Vilquin (antitrust).