International Financial Law Review Honors Dechert Restructuring Deal

Dechert LLP’s financial restructuring practice has been recognized for its part in the restructuring of Brazilian oil-and-gas driller Serviços Petróleo de Constellation, which was named “Restructuring Deal of the Year” by the International Financial Law Review at the IFLR Americas Awards 2020. 

Participants in the IFLR’s awards are judged on legal innovation. Winners are chosen for their excellence in orchestrating cross-border deals that break new legal ground and set market precedents.

Amidst declining world oil prices and a recession in Brazil, Constellation filed for judicial recovery proceedings in Rio de Janeiro in December 2018. Ancillary proceedings were also filed in the British Virgin Islands and in New York bankruptcy court, where the company sought to restructure US$1.5 billion of debt governed by New York law. 

Dechert, led by Allan Brilliant, chair of the firm’s financial restructuring practice, served as international counsel to a large holder of Constellation’s 2024 bonds. The firm worked with Brazilian counsel, Cascione Pulino Boulos Advogados, in objecting to Constellation’s plan of reorganization in Brazil. In addition, the firm objected to Constellation’s motion to enforce the plan in the United States in chapter 15 proceedings before the Southern District of New York bankruptcy court.

In November 2019, Constellation reached a settlement with Dechert’s client, allowing it to close a pre-packaged bankruptcy deal with creditors in December 2019, bringing to a close one of Latin America’s largest and most complicated bankruptcy filings.

About Dechert

Dechert is a leading global law firm with 26 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.