Deoleo S.A.’s €575 Million Financial Restructuring

Latham & Watkins has advised the committee of lenders (across first and second lien) in relation to a recapitalisation and a full balance sheet restructuring of Deoleo S.A.

Deoleo S.A. (Deoleo) is the Spanish headquartered global olive oil production and distribution business.

The transaction will be implemented through multiple corporate processes, including a Spanish law homologación (scheme of arrangement) which was approved by the Commercial Court of Córdoba on Friday, 20 March 2020.

The restructuring was particularly complex due to Deoleo being a Spanish listed company with a substantial free listing. It included a reorganisation of the existing equity and preferential share structure through a Spanish law governed simultaneous capital reduction, an increase process with a rights issue of up to €50 million, and the issuance of warrant instruments; a refinancing and partial equitisation of the group’s debt following a partial pay down with the rights issue proceeds; a business and asset reorganisation (in addition to the balance sheet repair); and the implementation of a new corporate governance structure.

The Latham team was led by London restructuring and special situations partners Yen Sum (Picture) and Jennifer Brennan and Madrid partner Ignacio Gómez-Sancha, with London associates Hugo Bowkett, Michaela Schmiederova and Maria Holzhammer, and Madrid associates Carmen Alonso and Carmen Esteban. UK corporate, governance and equity matters were led by London partner Huw Thomas, while US restructuring advice was provided by Los Angeles partner Ted Dillman.

Involved fees earner: Carmen Alonso – Latham & Watkins; Jennifer Brennan – Latham & Watkins; Ted Dillman – Latham & Watkins; Carmen Esteban – Latham & Watkins; Ignacio Gómez-Sancha – Latham & Watkins; Maria Holzhammer – Latham & Watkins; Michaela Schmiederova – Latham & Watkins; Yen Sum – Latham & Watkins; Huw Thomas – Latham & Watkins;

Law Firms: Latham & Watkins;

Clients: Deoleo S.A. – Committee of Lenders;