Aird & Berlis LLP represented the ad hoc committee of the unsecured noteholders (the “Noteholders”) of Frontera Copper Corporation (“Frontera”) in Frontera’s recapitalization and plan of arrangement pursuant to the Canada Business Corporations Act (the "Arrangement"). Under the Arrangement, all of Frontera’s $89 million in 10% senior unsecured notes were exchanged for new guaranteed senior secured notes. With the help of A&B leading the negotiations on behalf of the Noteholders, the Arrangement received overwhelming approval at the special meeting of Noteholders held on June 7, 2010. The Arrangement also received final approval of the Ontario Superior Court of Justice on June 10, 2010. All of the Noteholders received new 10% guaranteed secured notes, which commenced trading on the TSX on June 16, 2010.
Frontera is the parent corporation of Cobre Del Mayo, S.A. de C.V., which owns and operates the Piedras Verdes copper mine in Mexico. The Arrangement was necessary in order to allow Frontera to continue its move toward profitability and create value for all stakeholders, including the Noteholders.
The A&B team acting for the Noteholders was led by Steven L. Graff and included: Sam Billard and Aaron Collins (Banking and Insolvency) and Barbara Worndl (Tax).