NSTLaw and BDO have advised Copper Mining and Smelting Complex Bor (the "RTB Bor Group") on the largest pre-packaged restructuring plan in Serbian history. According to NSTLaw, the commercial court in Zajecar, Serbia, adopted the PPRP involving the four companies of RTB Bor, with a value of restructured debt exceeding EUR 1.2 billion.
NSTLaw reports that the restructuring "represents the largest financial restructuring in bankruptcy in Serbia ever.” According to the firm, “the adopted plan is particularly important considering the fact that RTB Group is a company of strategic importance for the Republic of Serbia."
Creditors in all creditor classes voted to accept the plan with a majority of 70% to 100% of votes in each class, with the following consequences: (1) A write-off of 90% of unsecured claims; (2) A rescheduled debt repayment; (3) debt-to-equity swap for secured creditors, which will result in the RTB Group having a clear ownership structure; (4) merger of all four companies with the goal of establishing one integrated system; and (5) the possibility for further development of production and development of new mines with different investment structures.
Finally, according to NSTLaw, "this way, after several decades, the RTB Group has successfully solved its debt burden issues and created an opportunity for further development, which is important not only for the development of the RTB Group, but also for the region where the group is located, and [for the] development of the Republic of Serbia as a whole."
NSTLaw and BDO advised the RTB Group on preparation of the plan, negotiations with creditors, and obtaining of required permits and approvals, and represented it before the Commercial Court, among other things.
