Ad-Hoc Group Confirms its Support for the Proposed Restructuring of the Province of Neuquén Outstanding 7.500% Notes due 2025 Announced on November 17, 2020

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As a result of constructive engagement between the Province of Neuquén and the Ad-Hoc Group of Bondholders of the Province, the parties have reached agreement to substantially amend the currently outstanding consent solicitation for the Province’s 7.500% Notes due 2025.

As a result of constructive engagement between the Province of Neuquén (the “Province”) and the Ad-Hoc Group of Bondholders of the Province (the “Group”), the parties have reached agreement to substantially amend the currently outstanding consent solicitation for the Province’s 7.500% Notes due 2025 (the “TIDENEU Notes”). The amended terms will provide the Province relief by way of a reprofiling of the current amortization schedule and targeted reductions in the interest rates on the outstanding TIDENEU Notes. The Group considers the proposed relief appropriate to assist the Province in navigating the challenges of the COVID-19 pandemic and the fall in international oil prices. The Group intends to vote in favor of the proposed amendments announced by the Province via the amended and restated consent solicitation statement published on the date hereof (the “Proposal”).

The Group calls on the Province to use the opportunity afforded by the debt reprofiling to ensure that it enacts and maintains policies sufficient to maintain robust debt sustainability over the medium- and long-term. The members of the Group believe that, via the transactions contemplated in the Proposal, bondholders will have made a substantial contribution to paving a path for recovery and growth in the Province in the post-COVID-19 world. It is important that the Province seizes this opportunity to foster the conditions for sustainable and inclusive growth.

The Group, comprised of institutional and retail holders of the Province’s external debt, holds, in the aggregate, over 25% of the TIDENEU Notes. Negotiations with the Province were led by Caius Capital LLP and VR Capital Group Ltd.

The Group is advised by Morrison & Foerster LLP.

Holders of the Notes wishing to better understand the terms of the Proposal and their rights with respect to the TIDENEU Notes, or to receive further information regarding the Group, are encouraged to contact the Group’s counsel, Morrison & Foerster LLP, through Gary S. Lee (glee@mofo.com) and Andrew Kissner (akissner@mofo.com).

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Gary S. Lee
Morrison & Foerster
(212) 468-8042
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Andrew Kissner

(212) 336-4117
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