Blantyre’s Proposed Restructuring Plan for Inparsa Approved

Cuatrecasas has advised Blantyre Capital on the court approval of a restructuring plan for Inparsa (Inversiones y Parcelaciones Urbanas), which will allow the company to avoid its current insolvency situation and ensure its continuity through (i) restructuring the secured debt; (ii) a partial debt-for-equity swap; and (iii) the provision of new financing.

This is the third ruling in Spain to approve a restructuring plan promoted by creditors and expressly opposed by shareholders. The firm’s Restructuring, Insolvency and Special Situations Practice has been directly involved in all three cases. The ruling reinforces the active role that creditors can play in restructuring processes and opens the door to national and international investment in financially insolvent but economically viable companies.

In the proposal approved by Commercial Court No. 3 of Las Palmas de Gran Canaria, investment manager Blantyre Capital will capitalize the debt and inject capital to ensure the continuity of employment and the viability of Inparsa, the management company of the Beatriz Costa & Spa and Beatriz Plaza & Spa hotels, both located in Lanzarote. Supported by the vast majority of the company’s creditors, the transaction will take place once the ruling is implemented.