Ad Hoc Group of Bondholders of the Province of Chubut Announces its Support for Consent Solicitation

NEW YORK, Dec. 9, 2020 /PRNewswire/ -- On December 4th, 2020, the Province of Chubut (the "Province") announced a consent solicitation (the "Consent Solicitation") seeking to modify certain terms of its 7.75% Secured Amortizing Notes due 2026 (the "Notes").

The terms of the Consent Solicitation are a product of extensive, good-faith negotiations between the Province and an ad hoc group of institutional bondholders (the "Ad Hoc Group"). The proposed transaction provides significant near-term liquidity relief to the Province while simultaneously respecting the secured nature of the Notes, and presents an amended amortization profile which is reflective of the underlying cash flows of the collateral trust. The proposed amendments also include various structural enhancements, including additional collateral, disclosure requirements, and covenants, which the Ad Hoc Group believes is a testament to the strength of the collateral trust financing structure and will preserve such structure as a financing mechanism for the Province in the future. As such, the Ad Hoc Group has signed a support agreement in favor of the proposed transaction.

The Ad Hoc Group is advised by Latham and Watkins LLP. Holders wishing to receive more information regarding the Ad Hoc Group are encouraged to contact Chris Clark of Latham & Watkins LLP at [email protected].

SOURCE Chubut Ad Hoc Group of Bondholders

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