NEW YORK, Dec. 15, 2020
NEW YORK, Dec. 15, 2020 /PRNewswire/ -- The Ad Hoc Bondholder Group (the "Group") of the Province of Cordoba (the "Province") rejects the terms of the Province's re-amended Consent Solicitation (the "Re-amended Solicitation") announced by the Province on December 14, 2020. The Group is composed of institutional money managers holding in excess of 50% of the Province's international bonds subject to the Consent Solicitation.
The Re-amended Solicitation is a unilateral proposal from the Province and is not the product of good-faith negotiations with bondholders. It does not reflect the fundamental solvency of the Province nor its true medium-term payment capacity. As such, the terms proposed in the Re-amended Solicitation would impose unnecessary and unjustified losses on bondholders. It would also create lasting damage to the reputation and credit standing of the Province.
The Group remains prepared to work constructively with the Province to develop a consensual adjustment to the terms and structure of the Province's debt. Such an adjustment must be based on fair and objective principles of debt sustainability, free from interference by third parties and without reference to arbitrary "acceptable NPV recoveries". Discussions must be rooted in the realities of the Province's financial position and outlook.
The Province has been a longstanding and responsible issuer in the international capital markets, and has used funding raised in such markets to implement capital projects that have contributed substantially to the productive capacity of the Province. As acknowledged by a leader of the governing coalition in the recent debate over the 2021 budget, the public works carried out in the Province with external financing have "changed the life of the people of Cordoba; and that work will help us better exit the serious situation generated by the pandemic". Finding a mutually satisfactory solution with the Group to the Province's debt situation will help preserve access to this important financial resource to the future benefit of the Province and its residents.
White & Case LLP
Erin Hershkowitz in New York
T +1 646 885 2200