Altera Infrastructure Completes Prearranged Bankruptcy

Paul, Weiss advised Brookfield Business Partners L.P. as sponsor in the successful prearranged chapter 11 cases of its portfolio company, Altera Infrastructure, a leading global supplier of infrastructure assets to the offshore energy industry. Altera emerged from bankruptcy on January 9 in the U.S. Bankruptcy Court for the Southern District of Texas after successfully consummating its chapter 11 plan of reorganization.

With the support of substantially all of Altera’s lenders, including Brookfield, the restructuring comprehensively reprofiled Altera’s bank loan facilities to better align cash flow with debt service obligations, and equitized more than $1 billion in junior debt obligations. The restructuring, consummated approximately five months after the cases were filed, provides for an 87% to 13% equity split between Brookfield and an ad hoc group of Altera parent noteholders, along with specified rights to participate in a $96.51 million equity rights offering.

The Paul, Weiss team included, among others, restructuring partners Jacob Adlerstein, Brian Hermann and Paul Basta; corporate partners Brian Lavin, David Huntington, David Carmona and Gregory Ezring, and counsel Lyudmila Bondarenko; litigation partner Gregory Laufer and Andrew Ehrlich, and counsel Robert Kravitz and Peter Jaffe; tax partner Lindsay Parks and counsel Anne McGinnis; intellectual property partner Charles Googe; and environmental counsel William O'Brien.