NEW YORK, Oct. 21, 2020 /PRNewswire/ -- The Ad-Hoc Committee of Secured Bondholders (the "AHC") of the Province of Neuquén (the "Province"), notes the Province's Amended and Restated Consent Solicitation originally dated August 10, 2020 and revised on October 19, 2020 (the "Offer"). After careful review, the AHC has rejected the amended Offer.
The AHC first recognizes the Province's thoughtful approach to the revised Offer and notes its agreement with and appreciation of a number of the changes. Notwithstanding the foregoing, as has been continuously communicated to the Province, its advisors, and the public, the AHC believes that any acceptable offer to the Secured Noteholders must meet three key criteria. The revised Offer unfortunately fails all three.
- First, cash flows underpinning the Collateral Trust have and continue to be fully capable of servicing the contractual payments due on the Secured Notes. As such, any acceptable proposal must maintain continuity of interest at the current contractual rate.
- Second, any amendments to the principal payment schedule of the Secured Notes must also be reflective of the underlying cash flows of the Collateral Trust.
- Third, the Province must abandon its attempt to give unsecured creditors a vote over future amendments to the Secured Notes.
The AHC remains available to continue its dialogue with the Province in order to find a mutually acceptable solution that protects creditors' interests.
The AHC is comprised of institutional investors holding approximately 38% of the Province's outstanding 8.625% Secured Notes due 2028 (the "Secured Notes").
Secured Noteholders wishing to receive further information about the AHC are encouraged to contact Chris Clark at Latham & Watkins LLP (email@example.com).
SOURCE Neuquén Ad-Hoc Secured Bondholder Committee