Global law firm White & Case LLP has advised ZÅ‚omrex International Finance S.A. (ZIF) on the restructuring of its approximately $118 million outstanding senior secured high yield notes due 2014.

Incorporated in France, ZIF is a financing vehicle for the Cognor group, one of the largest suppliers (by volume) of scrap metal, the second largest seller of semi-finished steel products and the fifth largest seller (by volume) of finished steel products in Poland.

ZIF’s existing high yield bonds, which were governed by New York law, were exchanged for new senior secured PIK notes and exchangeable PIK notes issued by a new Cognor finance vehicle incorporated in the UK.
 
The maturity of the existing notes was closely followed by the completion of the restructuring, which was implemented by way of an English law Scheme of Arrangement. Schemes have become instrumental in the restructuring of the indebtedness of overseas-incorporated companies and group structures (with the necessary ‘sufficient connection’ to England) as they can be more efficient and user-friendly than certain local law alternatives.

London-based White & Case partner David Becker said: “We were very pleased to help our client complete the successful restructuring of its existing high yield bonds. It’s another example of how effectively New York law-governed high yield indebtedness can be restructured using an English law Scheme of Arrangement as well as being the latest in a string of such deals on which White & Case has taken a leading role.”

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