NEW YORK (PRWEB) August 20, 2020
Institutional holders of the Series 1 7.500% Notes due 2025 (the “Notes”) issued by the Province of Neuquén (the “Province”) have formed an ad hoc group (the “Group”) to defend and protect creditor rights in light of the unfair and unilateral attempt by the Province to restructure its debt to the detriment of noteholders via the consent solicitation and exchange offer published on August 10, 2020 (the “Proposal”). The Group will not support the Proposal and categorically rejects it.
The Group recognizes the substantial near-term challenges that the Province faces and is willing to act in a responsible manner to assist the Province in actions to ameliorate its situation. Unfortunately, rather than address its creditors in a forthright manner and seek their constructive engagement, the Province has instead elected to launch a unilateral restructuring Proposal that is not based on any reasoned analysis of debt sustainability or a credible estimate of the Province’s ability to pay.
The Proposal appears to be a transparent attempt by the Province to opportunistically shirk its lawful debt obligations on the back of the Republic of Argentina’s debt restructuring exercise. The Group, however, believes that any restructuring of the Province’s debt should be the result of good faith engagement with its noteholders to develop a proposal that is based on credible forecasts and an objective assessment of the Province’s ability to pay. It is only through such a process that a successful exchange offer can be achieved, while a unilateral approach without creditor consent will lead only to the exclusion of the Province from international credit markets.
The Group looks forward to working with the Province to arrive at a sensible solution to its financing needs.
Holders of the Notes wishing to better understand the terms of the Proposal and their rights with respect to the Notes, or to receive further information regarding the Group, are encouraged to contact the Group’s counsel, Morrison & Foerster LLP, through Gary S. Lee (email@example.com) and Andrew Kissner (firstname.lastname@example.org).