FERRERE advised the Paraguayan company Nyne Waters on acquisition of various assets from Indusur. The deal, which closed at the outset of June, included trademarks, vehicles, nonrecordable assets and real estate in Paraguay.
Nyne Waters is now seeking to develop a lead generation water treatment plant, including high-tech bottling facilities for extraction, treatment, bottling and distribution of a novel type of drinking water, produced with clean technology. In fact, the locally manufactured products are expected to be distributed not only in Paraguay but also in the Americas and Europe.
With the complexity of the transaction, Indusur’s financial situation made it a distressed acquisition. In this context, FERRER’s participation was not limited to structuring the mechanism for acquisition of Indusur assets, but also included restructuring of the company’s debt to protect the assets from third-party claims in the context of Indusur’s indebtedness.
In turn, given the particular location of the real estate involved in the transaction, FERRERE had to implement an innovative strategy to correct the properties’ ownership status, in order to ensure that contingencies were not passed along to Nyne Waters as a result of the transaction.
Additionally, FERRERE offered comprehensive assistance to Indusur for the separation of its employees, as well for full payment of severance as required under local labor law, with a view to mitigating any risk associated with labor matters for Nyne Waters.
Moreover, considering the distribution network planned, FERRERE launch a crossborder process for registering the new trademarks to be used for the products.
Finally, the firm is advising Nyne Waters on structuring a strategic investments plan that will allow it to access the tax benefits afforded by Law 60/90 in the framework of the project’s execution. This plan includes environmental actions, in consonance with the purpose of the investment in clean technologies.
FERRERE’s advice has been led by the partners Carlos Vasconsellos and Marysol Estigarribia, with a broad team of associates: Manfred Heyn, Montserrat Puente, Antonella Llamas, Fernanda Benítez, Belen Ayala, Fernando Valdovinos and Larissa Cabanellas.