Ad Hoc Group of Buenos Aires Bondholders Expresses Concern about Long-Standing Bond Default and Signals Readiness to Exercise Remedies

Ad Hoc Group of Buenos Aires Bondholders Expresses Concern about Long-Standing Bond Default and Signals Readiness to Exercise Remedies

PR Newswire

NEW YORK, Jan. 29, 2021

NEW YORK, Jan. 29, 2021 /PRNewswire/ -- The Steering Committee of the Ad Hoc Group of Buenos Aires Bondholders (the "Group"), which comprises more than 40 institutions holding approximately 50% of the external bonded debt of the Province of Buenos Aires (the "Province"), is extremely concerned by the continuing absence of progress in curing the Province's long-standing payment default on its outstanding international bonds. 

Since April 2020, when the Province launched a unilateral exchange offer that was resoundingly rejected by bondholders, the Province has repeatedly extended the acceptance deadline for its plainly inadequate offer while failing to engage with bondholders.  Through this period, the Group has repeatedly pointed out that the Province's offer does not accurately reflect the Province's repayment capacity and will not command the necessary support of investors.    

In the intervening months since April, the Province has made no effort to bridge the gap with investors or to cure the outstanding payment default on its outstanding bonds.  During the same period, five Argentine provinces have initiated and concluded successful restructuring discussions with their respective bondholders, implementing solutions in each case that were the product of good faith negotiations.  The contrast of these good-faith, consensual processes to the Province's failed approach of non-engagement could not be more stark. 

The only conclusion that the Group can reach is that, unlike other provinces facing similar pressures, the Province feels no urgency to address its outstanding payment default.  This position is intolerable to the members of the Group, who for years have provided financing that has funded capital projects, underpinning the Province's economic growth and promoting social inclusion.  The Province's lack of respect for its contractual commitments, and the lack of engagement with its bondholders, does a disservice to the citizens and businesses of Buenos Aires.

Accordingly, absent a decisive change of course by the Province, which the Group has repeatedly called for, the members of the Group will have no choice but to exercise their available remedies under the outstanding bonds.  Such remedies may include acceleration of some or all of the bonds and/or direct enforcement of contractual rights against the Province.  Such actions may be initiated at any time.

Contact:
White & Case LLP
Erin Hershkowitz in New York
T +1 646 885 2200
E erin.hershkowitz@whitecase.com


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