Unifin Financiera reported that it will stop paying interest and capital on its debt from this date and until the period necessary to negotiate definitive agreements with its creditors “in relation to a strategic restructuring , in an orderly and consensual manner.”
In a stock exchange statement released late Monday, which did not specify amounts, it said “payment obligations under private non-recourse securitization structures for the company will continue to be honored in accordance with their terms.”
The lessor stated that due to the situation affecting the country’s non-banking financial sector, as well as the global environment, the company faces limited access to financing sources “which has affected its capital and liquidity structure” and that it analyzes strategies focused on maintaining sources of income and funding.
Unifin also reported that it “intends” to negotiate standby agreements with its creditors that will allow it to implement the restructuring, negotiate and finalize potential financing, refinancing, investment and capitalization operations.
The firm highlighted that it hired Rothschild & Co., AlixPartners, Sainz Abogados and Skadden, Arps, Slate, Meagher & Flom, LLP as advisors to analyze and develop solutions in the restructuring process.
Unifin’s main lines of business are operating leasing, factoring, auto loans, working capital loans, structured loans and insurance.
Through its factoring business, the company provides its customers with financial and liquidity solutions, acquiring or discounting accounts receivable from its customers or, as the case may be, from its customers’ suppliers. Unifin’s automotive line of credit is mainly dedicated to granting loans for the acquisition of new or used vehicles.
With information from Reuters
