Linklaters advises the Naviera Armas Group on its comprehensive restructuring

Linklaters has advised the Naviera Armas Group on its recent financial and capital restructuring. The restructuring was implemented using the novel Spanish Restructuring Plan and was one of the first transactions to be implemented using this new legal framework. The transaction resulted in a significant de-leveraging of the Group’s balance sheet and a material decrease in the Group’s annual debt servicing costs.

The Naviera Armas Group is a leading Spanish ferry and shipping company engaged in the maritime transport of passengers, goods and cargo.

The restructuring included a comprehensive reduction in the Group’s obligations under its senior notes debt through a combination of the reduction and capitalisation of certain secured debt. Additionally, certain unsecured debt was compromised using the cross-class cramdown tool made available by the new Spanish Restructuring Plan regime. The restructuring also included the extension of the maturity date of the senior notes debt, the provision of significant new money to the Group, the transfer of equity in the Group to certain senior notes holders, and the introduction of an enhanced governance regime for the Group (including the appointment of a new CEO and a reinforced management team).

The Linklaters team was led by Global Co-Head of Banking Ben Crosse, Restructuring & Insolvency partner Rowland Light and Capital Markets partner Melinda Perera, and supported by Restructuring & Insolvency/Banking managing associates Conor O’Brien, Jayne O’Connell and Piotr Hurkala, and Banking associates Adriana Perez Cavazos, Dami Banire, Angelo Salis, Mason Hancock and Jessica Fitzpatrick.

J&A Garrigues, S.L.P. advised the Naviera Armas Group on Spanish law matters.

The transaction is testament to Linklaters’ market-leading restructuring capabilities and reflects the team’s ability to coordinate highly complex restructuring transactions.