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 (chris.clark@lw.com).
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SOURCE Neuquén Ad-Hoc Secured Bondholder Committee