Stankovic & Partners (NSTLaw) has announced that the Commercial Court in Zajecar has adopted the pre-packaged reorganization plan for the four companies of the RTB Bor Group’s copper mining and smelting complex in Serbia. NSTLaw describes the restructuring, worth EUR 1.2 billion, represents the largest financial restructuring in bankruptcy ever in Serbia.
According to NSTLaw, 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 between 70% to 100% of votes in each class, with the following consequences: (1) a write-off of 90% of unsecured claims; (2) rescheduled debt repayment; (3) a debt-to-equity swap for secured creditors; (4) a 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.
According to NSTLaw, “this way, after several decades, RTB Group has successfully solved the debt burden issues and created an opportunity for further development, which is important not only for the development of RTB Group, but also of the region where the group is located and development of the Republic of Serbia as a whole."
NSTLAW and BDO have advised the RTB Group in all phases of the project, preparation of the plan, negotiations with creditors, obtaining of required permits and approvals and representation before the Commercial Court.