Legal Obstacles Overcome, $200M Deal Closed for Client Goldman Sachs
Firm Newsletter Spring 2011
Goldman, Sachs & Co. retained BSF as lead counsel in its acquisition of Colombian coal mining assets from Coalcorp Mining Inc., a publicly-traded Canadian mining company, in late fall 2009.
The transaction, which was valued at over US $200,000,000, consisted of an asset acquisition, a stock acquisition, a bridge financing and the negotiation of various ancillary arrangements with third parties in the mining space in Colombia and elsewhere. The transaction spanned seven jurisdictions (including Colombia, Canada and Panama) and involved the coordination of many interested parties in a very short period of time. The acquisition also marked Goldman Sachs’ first significant investment in Colombia.
In the transaction, Coalcorp intended to sell the bulk of its assets (including the operating mine known as “La Francia,” an undeveloped mining concession and related infrastructure assets) to repay bondholders and finance a litigation in Canada against its former management. This litigation was later settled between the signing of definitive documentation and the closing of the transaction on March 19, 2010.
Prior to the closing, Coalcorp was confronted with various legal actions challenging the consummation of the acquisition, including an action in the Southern District in New York. The Firm acted as lead counsel to Goldman Sachs in navigating the transaction to a successful closing despite the legal obstacles.
The corporate team advising Goldman Sachs consisted of partners Robert Leung and Jason Hill and associates Stefan dePozsgay, Russell Franklin, Francisco Nuñez, and Matthew Senatore. The litigation team advising Goldman Sachs consisted of managing partner Jonathan Schiller, partner Eric Brenner and associate Vincent Liu.
Related Practice: Corporate