Zona de Azar Chile – New Restructuring of Enjoy: Jamarne Leads Sales Process

Chile.-  August 21, 2024 www.zonadeazar.com New restructuring of Enjoy.- In June, Juan Ignacio Jamarne, who was previously involved in the 2020 reorganization of Enjoy, led a new restructuring process for the casino operator.

Jamarne, whose father was the attorney for the overseer in the previous process, highlighted the differences between the two restructurings, emphasizing that the current situation does not involve the pandemic and has different goals and actors.

New Restructuring of Enjoy

The current reorganization proposal includes a corporate restructuring and a plan to sell assets to pay bondholders. In the coming days, the approved agreement in Chile will be presented to the court in the United States for recognition. The strategy involves selling certain Enjoy assets and ensuring the operational continuity of business units.

Jamarne has been part of similar processes in companies like Servicios de Exportación Sur and Food Solutions. Despite his experience, this Enjoy reorganization was more complex, with total debt exceeding 350 million dollars and an additional contingent debt of 200 million dollars. The magnitude of the debt and the need to find solutions prevented a possible liquidation of the company, which would have had serious consequences, including the loss of employment for more than 4,000 workers.

The reorganization process extended longer than usual due to the need to negotiate with international bondholders and other involved parties. Although a creditors’ meeting was originally scheduled for April, it was postponed twice due to the complexity of the negotiations. Finally, an agreement was reached, reflecting the willingness of all parties to avoid liquidation.

Now, Enjoy will be under legal intervention for at least a year, with Jamarne acting as the intervenor. The reorganization agreement is divided into two phases: the first includes modifications and the creation of new companies, while the second will focus on asset sales, including those related to international bonds.

In the second phase, Jamarne has mandates to sell specific assets, such as shares and assets from the international bond, including Enjoy Punta del Este in Uruguay. However, the sale of operations in Chile is not an essential part of the agreement and will depend on future agreements with the creditors’ committee.

The Mexican group Logrand, which had already shown interest in the first reorganization, could be a potential buyer of some assets. However, Jamarne remained reserved about the details of negotiations with potential buyers.

Finally, on August 19, a total renewal of the Enjoy board of directors will be voted on, which currently includes Jaime Maluk and other members. The new board will be responsible for implementing the agreed corporate restructurings, including the creation of three new companies to manage different assets and operations of Enjoy.

Edited by: @_fonta www.zonadeazar.com