Ad Hoc Group of Chaco Bondholders Reaches an Agreement with the Province on Restructuring Terms

NEW YORK, April 12, 2021 /PRNewswire/ — Following constructive discussions with representatives of the Province of Chaco (the «Province»), the ad…

NEW YORK, April 12, 2021 /PRNewswire/ — Following constructive discussions with representatives of the Province of Chaco (the «Province«), the ad hoc bondholder group (the «Ad Hoc Group«) of the Province confirms it has reached agreement with the Province on the terms of a proposed debt restructuring. The Ad Hoc Group intends to support a consent solicitation expected to be launched shortly by the Province to effect certain amendments (the «Amendments«) to its U.S.$250,000,000 9.375% Notes due 2024 (the «Notes«) in line with the agreed terms set out in the Province’s press release published earlier today.

The Amendments are the product of good-faith negotiations between the Province and its bondholders and are consistent with the Basic Principles for restructuring of Argentine provincial debt published by the Coalition of Argentine Provincial Bondholders. If implemented, the Amendments will provide the Province with appropriate cash flow relief in the form of coupon reductions and maturity re-profiling that will help the Province in navigating the unexpected challenges it has faced as a result of the Covid-19 pandemic and allow the Province re-allocate financial resources to finance urgent important social priorities as well as ensure continued funding of key infrastructure projects.

Negotiations for the Ad Hoc Group were led by VR Advisory Services Ltd. The Ad Hoc Group holds approximately 50% of the outstanding principal amount of the Notes.

 

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SOURCE White & Case LLP