BroadSpan Advises Bondholders in Lupatech Restructuring

Sao Paulo, Brazil, September 30, 2014 – Brazilian oil & gas services company Lupatech S.A. announced the completion of its debt restructuring process today. As part of the process, Lupatech filed an extrajudicial recovery plan in Brazil, which was approved by bondholders in December 2013. Holders of Lupatech’s 9.875% Guaranteed Perpetual Bonds agreed to convert 85% of their debt into equity, and exchanged the remaining 15% for new restructured notes.

Additionally, holders of Lupatech debentures, such as BNDES, and other unsecured creditors, including large Brazilian banks, also restructured their exposure, principally by converting into equity.

The process was approved by creditors in December 2013 and by the Brazilian and U.S. courts in mid- 2014.

One LatAm investor said that Lupatech’s restructuring deal was novel in Brazil. “When Luaptech presented its restructuring plan it was really the first time in Brazil we’ve seen shareholders properly diluted and bondholders compensated with equity,” said the investor. “That has set a promising precedent.”

Lupatech is one of the largest Brazilian providers of high value-added products and services focused on the oil and gas industry. Lupatech’s businesses are organized in two segments: Products and Services.

The Products segment provides, especially to the oil and gas industry, cables for anchorage of production platforms, valves, equipment for well completion and natural vehicle gas compressors. The Services segment provides workover, drilling, intervention on wells, coating and piping inspection services.

BroadSpan Capital LLC acted as financial advisor to the Steering Committee of Lupatech Bondholders for this restructuring.