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Enjoy presented a new proposal for judicial reorganization this Wednesday before the 8th Civil Court of Santiago, – a document that replaces the draft presented on May 17 – and which seeks to have it voted on at the meeting of creditors that was set for July 26 of this year.
The general manager of the casino operator, Esteban Rigo-Righi, informed the market that “The plan proposed to creditors aims at the operational continuity of the company and thus continue generating income to meet financial obligations, responsibly sustaining its commitments to workers, suppliers, customers, shareholders and communities.”
This second proposal – which according to experts on the subject is generated after negotiations between both parties – proposes a greater restructuring of the $ 283,195 million that is owed, given that it introduces terms and conditions that seek to ensure control of Enjoy’s assets by of creditors, optimize operations and facilitate obtaining financing. Under this framework, the division of assets into three companies is proposed: NewCo 1, NewCo 2 and NewCo 3.
Corporate restructuring
According to the document and the structure it proposes, NewCo 1 will be controlled by the creditors of the International Bond and It will be made up of assets – such as the Coquimbo property, Pucón Hotel, the old Pucón casino, Pucón land and the company Baluma SA, operator of the Enjoy Casino in Punta del Este, Uruguay– that are collateral for the international bond, which will be paid with the flows or sales of those assets.
Additionally, the document states that when the New International Bonds have been paid or are considered extinguished due to having sold all of the assets indicated above, the corresponding agent “must cease to have control over the decision-making of NewCo 1 and, in Consequently, you must transfer the shares you own in NewCo 1 to Enjoy.”
For its part, the second company will contain all the assets or operations that have to do with financial creditors, a group that includes the issuers of guarantee policies or also called contingent creditors. The assets that are subject to this company are the Coquimbo and Pucón operators, the Viña del Mar, Rinconada, Antofagasta units and the Chiloé unit, which includes the Puerto Varas hotel..
On the other hand, the company NewCo 3 is free of debt controlled by Enjoy and with assets that are not guaranteed by anyone, among which are the centers of San Antonio and Los Angeles.
