Alsacia & Express Announce Effective Date of Prepackaged Plan of Reorganization

SANTIAGO, Chile, Dec. 17, 2014 /PRNewswire/ -- Inversiones Alsacia S.A. (together with Express de Santiago Uno S.A. and their subsidiaries and affiliates, the "Company") announced the successful completion of its restructuring process.  Today, the Effective Date of the prepackaged plan of reorganization (the "Plan"), the Company issued new 8.0% Senior Secured Notes due 2018 (the "New Notes") pursuant to an Indenture, dated December 17, 2014 (the "New Notes Indenture"), by and among the Company, The Bank of New York Mellon, as U.S. trustee, principal paying agent, transfer agent and registrar, and Banco Santander Chile, as Chilean trustee.  The New Notes will be issued today, along with a cash payment in an amount equal to the interest accruing from and including October 1, 2014 through and excluding today, the issue date of the New Notes, on the aggregate of: (a)  the principal amount of the Company's existing 8.0% Senior Secured Notes due 2018 (the "Existing Notes") and (b) the accrued and unpaid interest thereon at a rate of 8.0% per annum through and including September 30, 2014 (the "Catch-Up Cash Payment"), to qualified holders of the Existing Notes that tendered their Existing Notes prior to December 11, 2014 in accordance with the procedures described in the Plan and on two subsequent distribution dates to qualified holders of the Existing Notes that complete the procedures described in the Plan (including submitting a Letter of Transmittal) prior to June 15, 2015.  Non-qualified holders will receive certain cash payments, including the Catch-Up Cash Payment, as further described in the Plan.  The Plan was previously confirmed by the United States Bankruptcy Court for the Southern District of New York on December 4, 2014.  As a result of the issuance of the Notes and the satisfaction of the other conditions precedent in the Plan, the Effective Date has occurred.

As previously announced, the Company did not experience during its reorganization process and does not expect to experience any disruptions in its operations.  Specifically, the Company expects to continue to:

• operate its full schedule of services to the citizens of Santiago;
• provide its employees with wages, healthcare coverage, vacation days, and similar benefits without interruption; and
• pay suppliers for goods and services received throughout the reorganization process.

No other creditors or suppliers have been, or should be, affected by the restructuring of the Existing Notes implemented in accordance with the Plan.  The Company remains current on all of its other obligations as of the date of this announcement.

A Company spokesperson commented: "The Company is pleased to have completed the restructuring process, and looks forward to continuing to provide uninterrupted bus services to the citizens of Santiago and continuing to meet its obligations to its vendors and employees."

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alsacia--express-announce-effective-date-of-prepackaged-plan-of-reorganization-300011661.html

SOURCE Inversiones Alsacia S.A. and Express de Santiago Uno S.A.