On March 27, 2018, Banro Corporation and its Barbados-based subsidiaries (collectively the “Companies” and together with the subsidiaries in the Democratic Republic of the Congo, the “Banro Group”) announced that the Ontario Superior Court of Justice has approved the Companies’ Amended Consolidated Plan of Compromise and Reorganization, paving the way for the Banro Group to emerge from creditor protection.
Under the terms approved by the Ontario Superior Court of Justice, holders of US$207.5-million in debt instruments and US$20-million in gold-forward agreements will swap their securities for equity in the Banro Group. Additional obligations under gold-forward agreements worth US$30.9-million will be deferred for a number of years.
The Court’s sanction of the recapitalization plan is a key step towards its implementation and the Companies’ emergence from protection under the Companies' Creditors Arrangement Act. The recapitalization plan represents the best alternative for the long-term interests of the Banro Group which significantly reduces debt, improves liquidity, and allows the Banro Group to continue ongoing operations in the Democratic Republic of the Congo.
Cassels Brock is acting for the Banro Group with a team that includes Ryan Jacobs, Jane Dietrich and Sophie Moher (Restructuring and Insolvency), Jeffrey Roy (Securities), Michael Wunder and Patience Omokhodion (Financial Services) and Jim Morand (Tax).
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