Arias, Fábrega & Fábrega acted as local counsel for private equity firm Southern Cross Group on an investment of up to US$220 million in Ultrapetrol (Bahamas) Limited, one of the largest marine transport groups in the world.

Upon completion, Southern Cross will own approximately 78.4% of the outstanding common shares of Ultrapetrol. This fits with the private equity firm's strategy of investing in Latin American companies that have significant upside and growth potential.

Ultrapetrol operates more than 70 Panamanian flagged vessels, including tankers, tugboats and barges. The group is structured around 50 Panamanian subsidiaries but its main operations are in South America. Coordinating such a large investment among a complex corporate structure requires a significant level of sophistication. As part of the due diligence review, ARIFA assessed Southern Cross Group with all corporate related matters of the Panamanian subsidiaries; shipping related matters of the Panamanian flagged vessels; regulatory matters subject to Panama law; material contracts and debt obligations of the Panamanian subsidiaries; and in-rem liens with respect to the vessels, among others.