ThermaSource, LLC guarantees a credit with Industrial Pledge

García & Bodán provided advisory services to ThermaSource, LLC to constitute an Industrial Pledge which guarantees a credit obligation of US$ 11,509,000.00. The services included determining the best means to secure credit in accordance with Salvadorian law, the application and review of accrediting documents to enter into such contract, the development and configuration of the Industrial Pledge Deed and the filing of the Industrial Pledge in the Registry of Secured Transactions of the National Registry Center, which is a new inscription system that is being implemented in El Salvador.

The negotiation of the terms of the Industrial Pledge was carried out by lawyers of García & Bodán and Espino Nieto & Asociados, who advised the financial entity. The property pledged is a 1,500 hp Drilling Rig, which will be used in the Geothermal Power Plant of the Department of Ahuachapán, Republic of El Salvador, which will be a geothermal power generation project where ThermaSource will provide drilling services. This type of guarantee is unusual, as it is customary to use as a means to guarantee the mortgage on real property, however, this pledge guarantees the credit granted in a safe. 

In the transaction were involved the Senior Associate Oscar Torres and Associate David Claros from García & Bodán, the counterparty was counseled by Rafael Mendoza from Espino Nieto & Asociados: along with the lawyers of the entity Glitnir Hf. (company located in Iceland) and the Liquidator Agent of HAF Funding 2008-1 Limited (company located in Ireland).