PradaGayoso advised Orchestra children’s apparel brand on the restructuring of its debt with creditors

The insolvency agreement implies a payment deferral of three years for unsecured and subordinated creditors

PradaGayoso advised OPI Prendas Infantiles Orchestra –best known by its trade name Orchestra– on the restructuring of its debt with creditors.

The Commercial Court (Juzgado de lo Mercantil) no. 1 of Barcelona approved the insolvency agreement, which implies a deferral of three years for payment to unsecured and subordinated creditors.

Orchestra filed for insolvency in July 2020, but has continued to operate as a going concern. It owns six stores and has one franchised store.

In accordance to the viability plan delivered to its creditors, the company foresees to strengthen and extend its current chain of stores, and to enhance its online sales.

Orchestra Country Manager for Spain David Aucouturier said he feels ‘very satisfied’ for having succeeded in saving the company from liquidation: ‘It has been demonstrated that the value of the company as a going concern was higher than the value of its assets separately’.

Lawyer, economist and PradaGayoso founding partner Francisco Prada underlines that Orchestra is a multi-national company whose Spanish subsidiary has been able to restructure, while its French and Belgian susidiaries have ended up in liquidation.

In addition to Francisco Prada, attorney Marta Pinillos was also assigned to this process by PradaGayoso.