Livraria Cultura’s $73 Million Restructuring Plan

Felsberg advised Livraria Cultura on the transaction

The judicial restructuring was FILED on October 25th, 2018. Creditors will receive within different terms and with variable haircuts, depending on their specific classification (e.g. labor claims will receive their full amount within 1 year) and ability to incentive the debtors´ operations (e.g. creditors which agree to sell products to LC under reasonable market conditions will be able to anticipate their restructured payments over each new and post restructuring sale).

Unsecured claims which do not agree with any type of incentive to Livraria Cultura will have 70% discount and will be paid in 12 years after a 2 year grace period.

Livraria Cultura S.A. operates a chain of bookstores in São Paulo, Campinas, Ribeirao Preto, Rio de Janeiro, Brasília, Salvador, Recife, Fortaleza, Curitiba, and Porto Alegre, Brazil.

Felsberg advised Livraria Cultura with a team led by Fabiana Solano (Picture).

Involved fees earner: Fabiana Solano – Felsberg Advogados;

Law Firms: Felsberg Advogados;

Clients: Livraria Cultura S.A.;

Author: Ambrogio Visconti.