Paris Office Advises Latécoère in Financial Restructuring

July 5, 2010

French aircraft company Groupe Latécoère obtains approval for financial restructuring and conciliation principle guaranteed by the Toulouse commercial court.

On June 25, the financial restructuring plan for Willkie client French aircraft company Groupe Latécoère was approved at the company’s annual general meeting. Approval was obtained for all resolutions enabling the company to implement all aspects of the agreement signed with French bank lenders with respect to the financial restructuring of the group and the conciliation principle guaranteed by the Toulouse commercial court.

The agreement includes confirmation of short terms credits, a debt freeze until December 31, 2011 and the implementation of $280 million in coverage instruments for 2012. Bank lenders agreed to subscribe to convertible bonds issued by Latécoère and its subsidiary Latélec for a total amount of €71.5 million, representing 20 percent of the group’s debt. All shareholders will be granted equity warrants to compensate for possible dilution effects, enabling Latecoere to reinforce its shareholders’ equity up to a maximum of €43 million. The AMF approved these actions on June 11, 2010.

The matter was handled by partner Stéphane Sabatier, and associates Grégoire Finance, Charles Cardon, Samuel Scherman, Vanessa Zecchinel and Elise Carrera.