Sidley represented Atento, one of the world’s largest providers of customer relationship management and business process outsourcing (CRM/BPO) services, in its successful restructuring and capital raise implemented via two parallel, inter-conditional and multi-class UK restructuring plans pursuant to Part 26A of the Companies Act 2006.
As a result of the complex transaction, Atento has implemented a debt-for-equity swap for the majority of its US$760 million of financial liabilities resulting in a significant deleveraging, and also received a total investment of US$113 million during 2023 (including US$76 million of additional investment provided via the UK Restructuring Plans). The transaction now places Atento on a stable platform, ahead of its next phase of technological and geographical growth.
The Restructuring Plans, which implemented several novel features, including a consent solicitation to amend the governing law of New York law-governed notes to English law and the incorporation of a new English company for the purpose of proposing a UK Restructuring Plan and assisting with recognition procedures in various international jurisdictions across Europe and Latin America, were overwhelmingly approved by the company’s creditors at the creditors’ meetings held on 13 November 2023 and were subsequently sanctioned by the English Court at a sanction hearing held on 17 November 2023.
The team was led by partners Kieran Sharma and Jifree Cader (Restructuring) and Bryan Robson (Global Finance). The transaction involved a team working together across several practice areas and offices, including:
- Restructuring (London): partner Mark Knight, senior managing associate Dhevine Chandrapala, managing associate Luke Mason, associate Angad Sethi, and trainee solicitors Tom Jelly and Doris Beganović;
- Global Finance (London): partner William Gwyn, and associates Esther Crang and Henry Sasse;
- Capital Markets (New York and London): partners Alan Grinceri and Sam Gandhi, and associate Emenike Omeye;
- Tax (London): partner Jason Menzies, managing associate Ellie Verran, and associate Andrew Dibden;
- Corporate (London): partner Adam Runcorn, managing associate Cyril Cutinha, and associate Arjun Sehgal;
- Litigation (London): senior managing associates Sarah Lainchbury and David Smith;
- Competition (London): partner Patrick Harrison and counsel Murray Reeve; and
- Restructuring: partner Anthony Grossi (New York), managing associates Jason Hufendick (Chicago), Julia Philips Roth (Los Angeles), and associate Chelsea McManus (Dallas).
