AlphaCredit - Update on Discussions with Ad Hoc Group of Noteholders

MIAMI, Jan. 6, 2022 /PRNewswire/ -- On November 10, 2021, Alpha Holding S.A. de C.V. ("AlphaCredit" or the "Company") executed a nondisclosure agreement (the "NDA") with various members of an ad hoc group of holders (the "Ad Hoc Group") of the USD$700 million in principal amount of the 10% Senior Notes Due 2022 and the 9% Senior Notes due 2025 issued by the Company (the "Notes"). 

Since the execution of the NDA, the Ad Hoc Group and its advisors negotiated and executed a plan support agreement ("PSA") to support the filing of a consensual prepackaged Ley de Concursos Mercantiles proceeding ("Concurso Mercantil") and an associated term sheet identifying the indicative terms of such Concurso Mercantil proceeding (the "Term Sheet").  Copies of the executed versions of the Term Sheet and PSA are attached. 

Consistent with the Term Sheet and the PSA, on December 28, 2021, the Company filed a request for the Concurso Mercantil with the First Civil Federal District Court in Mexico City (the "Court").  Despite the support for the Concurso Mercantil by the various members of the Ad Hoc Group, who collectively hold in excess of 50% of the Company's unsecured claims, the Court dismissed the request on January 5, 2022 on technical grounds. The Company, its advisors, and the Ad Hoc Group are considering all options, including an appeal and/or reconsideration of the dismissal.

The Company and the Ad Hoc Group are continuing their dialogue in efforts to reach a consensual restructuring and the Company remains optimistic that it will come to a consensual deal with the Ad Hoc Group.

The Company is represented by White & Case, Del Castillo y Castro, Creel, Rothschild & Co, and AlixPartners.  The Ad Hoc Group is represented by Brown Rudnick, Sainz Abogados, and Houlihan Lokey.

Forward-Looking Statements

In addition to the disclaimers and qualifiers set forth in the materials themselves, all statements made in the Cleansing Materials are in the nature of settlement discussions and compromise, are not intended to be and do not constitute representations of any fact or admissions of any liability and are for the purpose of attempting to reach a consensual compromise and settlement.  Nothing contained in the Cleansing Materials is intended to or shall be construed to be an admission or a waiver of any rights, remedies, claims, causes of action or defenses.  The information contained in the Cleansing Materials is for discussion purposes only and shall not constitute a commitment to consummate any transaction, or otherwise take any decisions or actions contemplated in the Cleansing Materials.

Furthermore, the contents of the Cleansing Materials shall not be construed as guidance by the Company in relation to its future results, and the Company does not assume and expressly disclaims any responsibility to update such contents or information at any time.

This communication does not constitute an offer to sell or a solicitation of an offer to buy securities.  This communication is not an offer to purchase or a solicitation of an offer to purchase with respect to any Notes or any other securities.

About AlphaCredit^©

AlphaCredit^© is a technology-enabled, financial services company in Latin America that has historically provided consumer loans to individuals and financial solutions for SMEs in Mexico and Colombia.

SOURCE Alpha Holding S.A. de C.V.