Vallourec’s Restructuring

Gide advised Nippon Steel, while White & Case LLP has advised Vallourec’s ad hoc group of bondholders and RCF, led by Apollo, SVP, Bybrook and M&G, on the negotiation of an Agreement in Principle. Cleary Gottlieb advised Vallourec.

Vallourec, world leader in premium tubular solutions for the energy markets and for demanding industrial applications, reached an Agreement in Principle as part of its financial restructuring.

The Agreement in Principle concluded between the various stakeholders on February 3, 2021 primarily envisages: A major deleveraging of Vallourec, representing approximately €1.8 billion, which is more than half of the principal amount of its debt. The refinancing of the residual debt and the securing of significant liquidity and operational financing.

Bpifrance Participations and Nippon Steel Corporation, the reference shareholders of the Company have confirmed their support for this Agreement in Principle.

Subject to approval by the creditors’ committees and Vallourec’s General Meeting of Shareholders, this Agreement in Principle will enable the company to consolidate its balance sheet and reduce its debt and interest expenses to a suitable level that takes into account the consequences and uncertainties related to the coronavirus and oil markets crises. Apollo and SVP will become the company’s largest shareholders.

Gide advised Nippon Steel Corporation with Olivier Diaz (Picure), Charles de Reals, Corentin Charlès, Jean-Gabriel Flandrois, Nadia Haddad, François Lépany, Matthieu Cougnenc.

The White & Case team which advised on the transaction was led by partner Saam Golshani (Paris) and included partners Guillaume Vitrich, Franck De Vita, Séverin Robillard, Denise Diallo, Yann Utzschneider, Alexandre Ippolito (all Paris), Gilles Teerlinck (London), Thomas Lauria (New York & Miami), counsel Orion Berg (Paris) and associates Hugues Racovski, Amandine Grima, Tiphanie Levassort, Laure Elbaze, Fanny Abouzeid, Blanche Lancrey-Javal, Sarah Kouchad (all Paris), Mark Franke (Boston), Christine DeVito (New York), Brian Dearing and Adrien Dumoulin-Smith (both London).

The Cleary team included Pierre-Yves Chabert, Andrew Bernstein (Partners), Jeanne Theuret (counsel), Lauren Baker, Louis-Marie Savatier. Anne-Sophie Coustel (Partner) and Marion Losseau.

Involved fees earner: Lauren Baker – Cleary Gottlieb Steen & Hamilton; Andrew Bernstein – Cleary Gottlieb Steen & Hamilton; Pierre-Yves Chabert – Cleary Gottlieb Steen & Hamilton; Anne-Sophie Coustel – Cleary Gottlieb Steen & Hamilton; Marion Losseau – Cleary Gottlieb Steen & Hamilton; Louis-Marie Savatier – Cleary Gottlieb Steen & Hamilton; Jeanne Theuret – Cleary Gottlieb Steen & Hamilton; Corentin Charlès – Gide Loyrette Nouel; Matthieu Cougnenc – Gide Loyrette Nouel; Charles de Reals – Gide Loyrette Nouel; Olivier Diaz – Gide Loyrette Nouel; Jean-Gabriel Flandrois – Gide Loyrette Nouel; Nadia Haddad – Gide Loyrette Nouel; François Lépany – Gide Loyrette Nouel; Fanny Abouzeid – White & Case; Orion Berg – White & Case; Franck De Vita – White & Case; Brian Dearing – White & Case; Christine DeVito – White & Case; Denise Diallo – White & Case; Adrien Dumoulin-Smith – White & Case; Laure Elbaze – White & Case; Mark Franke – White & Case; Saam Golshani – White & Case; Amandine Grima – White & Case; Alexandre Ippolito – White & Case; Sarah Kouchad – White & Case; Blanche Lancrey-Javal – White & Case; Thomas Lauria – White & Case; Tiphanie Levassort – White & Case; Hugues Racovski – White & Case; Séverin Robillard – White & Case; Gilles Teerlinck – White & Case; Yann Utzschneider – White & Case; Guillaume Vitrich – White & Case;

Law Firms: Cleary Gottlieb Steen & Hamilton; Gide Loyrette Nouel; White & Case;

Clients: Apollo Global Management; Bybrook Capital; M&G Investments; Nippon Steel Corporation; SVP; Vallourec SA;

Naoual Sadouqi

Author: Naoual Sadouqi