Latham & Watkins Advises Lenders on the Recapitalization of ARVOS

Latham & Watkins has advised a committee of lenders in connection with the successful recapitalization of ARVOS group, the global manufacturer and supplier of industrial equipment, heat exchange, and transfer solutions.

The complex transaction was implemented by way of an English law scheme of arrangement under Part 26 of the Companies Act 2006 and included part-equitization of the Group’s existing debt.

The scheme of arrangement was approved by an overwhelming majority of the Group’s lenders across all facilities. The scheme effected, among other things, the amendment and maturity extension of the Group’s existing debt and a reduction of the outstanding term debt in exchange for new debt instruments, a minority stake in the Group held via a newly incorporated holding structure and a partial pay-down. The transaction effected a deleveraging of over €210 million of debt from the Group’s balance sheet and included an equity contribution by the Group’s sponsor Triton.

Latham teams across practices and offices in London, Germany, the US, and Tokyo were led by London restructuring and special situations partners Yen Sum and David Wallace, Hamburg partner Frank Grell, and counsel Daniel Splittgerber, with associates Maria Holzhammer, Tom Davies, Tim Robinson, Ben Russell, and Marcel Endrich. Advice on corporate matters was provided by London partner Huw Thomas and New York partner Andrea Schwartzman, with associates Oscar Ko, Alexander Nagorny, Christina Smith, and Florian Brüggemann; on finance matters by London partner Fergus O’Domhnaill, New York partner Melissa Alwang, and Tokyo partner Hiroki Kobayashi, with associates Chris Devine, Felix Buddee, Stefan Vujacic, Harry Webb, Aditi Sharma, and Julia Braeuer; on tax matters by New York partner Jiyeon Lee-Lim, London partner Karl Mah, and Hamburg partner Tobias Klass, with associates Emmanuel Kassim and Lina Le Roux; and on antitrust matters by London partner Jonathan Parker and Washington, D.C. partner Patrick English, with associate James Mathieson.