Client or Matter Name

Banco General – Financing to Maquinaria Especial and Polibio

Deal Description

Represented Banco General, the largest private equity bank in Panama, in the secured financing granted to the entities of Grupo Polibio and Maquinaria Especial. As part of this matter, the firm advised Banco General in certain processes for the cancellation of guarantees previously granted by the borrowers’ team, as well as in the assignment of certain collection rights on leases to operate as a source of payment. and collateral.

GC participated as lead counsel of the transaction, representing Banco General.

Borrowers and Guarantors: Maquinaria Especial, S.A. de C.V. and Polibio, S.A. de C.V.

Creditor: Banco General, S.A.

Innovation & Additional Comments

This was a legally complex operation, as it required certain modifications and corporate movements at the borrowers’ level, as well as the cancellation of previous real guarantees and the assignment and contribution of certain credit rights originated by lease contracts to function as a source of payment and collateral. Additionally, a new real guarantee (mortgage) was created to guarantee the obligations of the borrowers before the creditor.

Jurisdiction

Mexico

Governing Law

Mexico and Panama

Deal Value

USD$1.54 million

Deal Duration, Date of Closing / Signing

  • Kick-Off: May 2021
  • Closing: September 30, 2021

Practice Area

  • Corporate Finance

Team GC

  • Bernardo Reyes Retana K. – Lead Partner
  • Pedro Buchanan G. – Associate
  • Fernando Blanco G. - Associate

Other Firms Involved

Matsui & Salem Abogados, S.C., represented the borrowers (Maquinaria Especial and Polibio) in Mexico.

  • Attorneys: José Salem (partner) and Guadalupe Montes.