Imcopa Announces Judicial Confirmation of Its Reorganisation Plan

Aug 04, 2011, 10:27 ET from IMCOPA IMP EXP E IND DE OLEOS S.A.

ARAUCARIA, Brazil, Aug. 4, 2011 /PRNewswire/ -- Imcopa International Cayman Ltd. (the "Issuer") and Imcopa Importacao, Exportacao Industria e Oleos S.A. (the "Guarantor" or "Imcopa") are issuing this press release to update the holders (the "Noteholders") of the Issuer's U.S$100,000,000 10.375% Notes due 2009 (ISIN: XS0275709094) (the "Notes") on the status of its extrajudicial reorganisation plan (the "Reorganisation Plan").

Following its successful consent solicitation in October 2010 (the "Consent Solicitation"), Imcopa began efforts to have its proposed extrajudicial reorganisation plan (the "Reorganisation Plan") confirmed under Brazilian law. Under Brazilian law, in order to obtain judicial confirmation (homologacao) of the Reorganisation Plan, it required approval by creditors holding three-fifths of each affected class of Imcopa's indebtedness. The adoption by the Noteholders of the extraordinary resolution supporting the Reorganisation Plan pursuant to the Consent Solicitation gave Imcopa the necessary support from its unsecured creditors to file a petition with the Brazilian court to confirm (homologacao) the Reorganisation Plan.

On May 16, 2011, the Brazilian court granted confirmation (homologacao) of the Reorganisation Plan.  As a result, the terms of the Reorganization have become, as a matter of Brazilian law, binding on all secured and unsecured financial creditors of Imcopa, including the Noteholders. Certain terms and conditions of the Notes under the trust deed dated 27 November 2006, as supplemented by supplemental trust deeds dated 28 December 2007, 2 June 2008, 10 November 2009 and 26 October 2010, respectively, took effect upon confirmation (homologacao) of the Reorganisation Plan.  Imcopa is now turning its attention to implementing the steps set forth in the Reorganisation Plan.

"Imcopa is happy to report receiving judicial confirmation of the Reorganisation Plan," said Imcopa Chief Executive Officer Frederico Jose Busato Jr. "We have been able to navigate a challenging period in the history of both our company and the global economy and obtain approval for a restructuring plan that is fair to our creditors and will allow Imcopa to continue to expand upon its position in the industry as a leading global GMO-free soybean processor."

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