Subject: FNC
Ad Hoc Group of Bondholders of the Province of Mendoza Rejects Amended Offer
NEW YORK, July 8, 2020 /PRNewswire/ -- The Ad Hoc Group of Bondholders of the Province of Mendoza (the "Province") has reviewed the Province's amended proposal dated July 6th, 2020 (the "Amended Offer"). After due consideration, the Ad Hoc Group has determined to reject the Amended Offer.
While the Amended Offer represents a clear improvement to the initial proposal, it still does not reflect adequately the medium-term payment capacity of the Province. In particular, the Province seeks via the Amended Offer to significantly extend maturities which fall due well into the future at a time when the Province ought to have access to markets for its refinancing. Further, the Province seeks to extend these maturities at rates significantly below market. In effect, the offer represents an attempt to force current bondholders to provide a subsidized refinancing to the Province for maturities that the Province should properly and timely refinance in markets at then-prevailing rates.
The Ad Hoc Group has put forth several restructuring proposals to the Province which appropriately address the Province's legitimate needs. The Ad Hoc Group has offered significant permanent near-term cash flow relief as well as providing maturity extensions should the Province require them at the prevailing contractual rate of interest on the existing notes. This combination would allow the Province to continue to provide essential services and remove any uncertainty regarding its ability to tap markets for its future refinancing needs. Such a combination would also maintain the credit standing of the Province and maximize its future market access.
The Ad Hoc Group remains ready and willing to constructively engage in good faith with the Province of Mendoza to reach a mutually acceptable proposal capable of winning the wide support of its bondholders.
Holders with questions or wishing to establish communication with the Ad Hoc Group are encouraged to address inquiries to [email protected].
Contact:
Nicole Tackley
Infinite Global
[email protected]
315-289-2344
SOURCE Ad Hoc Group of Bondholders of the Province of Mendoza
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