Automotores Gildemeister Investigation | Unsecured Promissory Notes
Automotores Gildemeister SpA and several of its affiliates recently filed for Chapter 11 bankruptcy in the Southern District of New York. This bankruptcy filing may severely impact the rights of the company’s unsecured noteholders, and it may result is substantial losses.
If you are an investor or noteholder in Automotores Gildemeister, contact the attorneys at Peiffer Wolf Carr Kane & Conway for a FREE consultation by filling out a Contact Form or by calling 001-504-523-2434.
Automotores Gildemeister Investigation | What happened?
Automotores Gildemeister is a Chilean-based vehicle importer operating throughout South America and Central America. The company is the sole distributor of Hyundai vehicles in Chile and Peru. Also, it distributes Volvo, Jaguar Land Rover, and Mini brands (as well as others) in Peru, Uruguay and Costa Rica. The company also offers lending, insurance, construction and recycling services through its affiliates.
Prior to filing for bankruptcy, Automotores Gildemeister issued multiple series of unsecured promissory notes, totaling almost $36 million USD. These notes are coming due in 2021 and 2023. Automotores Gildemeister has asked the bankruptcy court to approve a plan that would void these notes, with no payment owed to the noteholders.
Automotores Gildeemeiser does not plan to pay these noteholders any cash at all at the conclusion of the bankruptcy, either. Instead, noteholders would be forced to accept new subordinated notes that would not come due until 2035. Even worse, noteholders will receive only $0.20 cents USD in new notes for every dollar currently invested—for example, a $10,000 USD note would be replaced with a new note worth only $2,000 USD.
Noteholders may be able to file documents in the bankruptcy case to protect their investments and make sure they participate in future recovery. Noteholders may also be able to fight to increase the amount the company plans to pay unsecured noteholders.
The bankruptcy and investor protection lawyers at Peiffer Wolf Carr Kane & Conway are investigating claims on behalf of Automotores Gildemeister noteholders who stand to lose some or all of their investments as a result of the bankruptcy. If you are an investor or noteholder in Automotores Gildemeister, contact the attorneys at Peiffer Wolf Carr Kane & Conway for a FREE consultation by filling out a Contact Form or by calling 001-504-523-2434.
FREE CONSULTATION | Automotores Gildemeister Noteholder Losses
If you are an investor or noteholder in Automotores Gildemeister, contact the attorneys at Peiffer Wolf Carr Kane & Conway for a FREE consultation by filling out a Contact Form or by calling 001-504-523-2434.
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