Lupatech announces subscriptions for R$720.47 million of common shares

By Caroline Salls

Pittsburgh, Sept. 4 – Lupatech SA subscription right holders subscribed to 2,881,888,993 common shares at an issue price of R$0.25 during the period for exercising preemptive rights, according to a news release.

The total subscription amount equaled R$720.47 million, with R$710.8 million corresponding to the amount subscribed to through the capitalization of credits and R$9.68 million to the amount subscribed in cash.

Lupatech said Aug. 29 was the deadline for holders of subscription rights to exercise their preemptive rights in the subscription of at least 2,704,000,000 and a maximum of 5,280,000,000 new common shares in connection with a capital increase.

The capital increase was approved to allow the implementation of the company’s reorganization plan by capitalizing the credits listed in the plan.

The company said the increase will have no impact on its cash reserves since it will result from capitalized credits and/or mandatory conversion into shares.

In connection with the capital increase, subscribers and/or assignees of preemptive rights who subscribed to all the shares to which they were entitled during the preemptive rights exercise period and expressed their intention to subscribe to unsubscribed shares may do so on Sept. 4, Sept. 5 and Sept. 8 at the subscription price of R$0.25 per share.

Lupatech manufactures industrial materials and is based in Caxias do Sul, Brazil. The company filed for bankruptcy on May 23 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15 case number 14-11559.

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