representative work

Banro Corporation Announces Effectiveness of its Recapitalization Plan and Emergence from CCAA

05/03/2018

On May 3, 2018, Banro Corporation announced the effectiveness of its Amended Consolidated Plan of Compromise and Reorganization, which was sanctioned on March 27, 2018 by the Ontario Superior Court of Justice (Commercial List) in connection with the implementation of the recapitalization plan and Banro’s emergence from protection under the Companies’ Creditors Arrangement Act.

A key feature of the recapitalization plan included an exchange of certain parity lien debt, including the amounts owing under the US$197.5 million 10.00% secured notes due March 1, 2021, Banro’s US$10 million dore loan and the US$20 million gold forward sale agreement for production at Banro’s Namoya mine, for all of the equity of restructured Banro.  Upon effectiveness of the recapitalization plan, all of Banro’s existing equity and any and all equity related claims were cancelled.

Cassels acted for Banro with a deal team that included Ryan Jacobs, Jane Dietrich, John Birch, Joe Bellissimo, Ben Goodis and Sophie Moher (Restructuring and Insolvency), Jeffrey Roy (Securities), Michael Wunder and Patience Omokhodion (Financial Services), Kristin Taylor (Employment & Labour) and Wendy Berman (Litigation).