Bruchou advised on successfulUS$500 million debt restructuring of the Argentine Province of Entre Ríos

Bruchou & Funes de Rioja - June 13, 2021

Banking & Capital Markets
Sovereign Debt & Public Sector Finance
Bankruptcy & Debt Restructure

Bruchou, Fernández Madero & Lombardi acted as advisors to HSBC Securities (USA) Inc., which acted as solicitation agent (the “Solicitation Agent”), in the restructuring of the Province of Entre Ríos’s (the “Province”) US$500 million 8.750% Notes due 2025 (the “Notes”).

The transaction was executed through a consent solicitation (the “Consent Solicitation”) directed to eligible holders of Notes to effect certain proposed amendments to the terms of the Notes (the “Proposed Amendments”), and involved negotiations with representatives of an Ad Hoc Group of Bondholders that led to an agreement in principle with respect to the Proposed Amendments prior to the launch of the Consent Solicitation. In addition, the Ad Hoc Group of Bondholders agreed to withdraw the claim filed by certain entities under management of its members on January 4, 2021 in the United States District Court for the Southern District of New York seeking a judgment against the Province.

As of the expiration time of the Consent Solicitation, the Province received consents from holders representing 97.15% of the outstanding principal amount of the Notes.

By virtue of the application of the collective action clause under the Notes, all Notes were amended to effect the Proposed Amendments, which included an extension of the maturity date, and amendments to the interest rate and the amortization schedule of the Notes.

Bruchou, Fernández Madero & Lombardi (as Argentine law counsel), through a team led by partner Perelsztein, Alejandro and associate Dorado, Lucila.