Alsacia & Express Announce Confirmation of U.S. Chapter 11 Plan

SANTIAGO, Chile, Dec. 4, 2014 /PRNewswire/ -- Inversiones Alsacia S.A.  (together with Express de Santiago Uno S.A. and their subsidiaries and affiliates, the "Company") announced today that on December 4, 2014 the United States Bankruptcy Court for the Southern District of New York confirmed the prepackaged plan of reorganization (the "Plan") that was previously submitted to the court. The Company filed petitions for reorganization under chapter 11 of the United States Bankruptcy Code on October 16, 2014.  

Promptly following the satisfaction of the conditions precedent to the effectiveness of the Plan, the Company will issue new 8.0% Senior Secured Notes due 2018 to holders of existing 8.0% Senior Secured Notes due 2018 (the "Existing Notes") that have previously tendered their Existing Notes in accordance with the procedures described in the Plan.  

As previously announced, the Company has not experienced and does not expect to experience any disruptions in its operations during its reorganization process. 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 that is to be implemented in accordance with the Plan.  The Company remains current on all of its other obligations as of the date of this announcement.

A spokesperson for the Company commented: "The confirmation of our restructuring plan is a crucial step to ensuring that we will have sufficient resources to continue operating in the ordinary course of business.  In addition, successful conclusion of our restructuring will put us in a better position to evaluate the replacement of over 60% of our fleet, which will have ten years of service in 2015.  If such replacement occurs, it will allow us to provide an improved service to the citizens of Santiago."

Important Note

The restructuring described above is subject to the satisfaction of closing conditions and is not an offer to sell securities or a solicitation of an offer to purchase any securities.   

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