Mendoza's Ad-Hoc Committee Rejects Restructuring Proposal

NEW YORK, June 8, 2020 /PRNewswire/ -- The Ad-Hoc Committee of Bondholders (the "AHC") of the Province of Mendoza (the "Province"), which is comprised of institutional investors holding approximately 40% of the Province's outstanding US$529,960,000 8.375% Notes due 2024 (the "Notes"), categorically rejects the unilateral exchange offer and consent solicitation published by the Province on June 5, 2020 (the "Offer").

The Offer represents an opportunistic and illegitimate attempt to conflate the fiscal and debt situations of the Province and the Republic of Argentina and does not reflect the underlying economic reality and payment capacity of the Province.

Based on the terms of the Offer, the Province is requesting a level of debt relief which is not commensurate with its level of indebtedness and available provincial resources. The Offer, which needlessly disregards the Province's contractual commitments, likewise sets an extremely negative precedent which will undoubtedly impact both the Province's and other Argentine issuers' reputation and ability to access the international capital markets in the future.

While the AHC stands ready to provide (and indeed has already offered) appropriate and generous short-term cash flow relief in light of the current public health crisis, the AHC will not participate in any unilateral exercise that seeks to permanently impair the contractual rights of holders to address what is fundamentally a short-term liquidity concern.

Holders of the Notes wishing to understand their contractual rights in respect of the Notes or receive further information about the AHC are encouraged to contact the AHC's New York counsel through Nicole Tackley at [email protected].

Contact:

Nicole Tackley
Infinite Global
[email protected]
315-289-2344

SOURCE Ad-Hoc Committee of Bondholders of the Province of Mendoza

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED