Ad Hoc Group of Entre Rios Bondholders Provides Province with Proposal for Restructuring of its 8.75% Notes Due 2025

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NEW YORK, Nov. 30, 2020 /PRNewswire/ -- The Ad Hoc Group of Entre Rios Bondholders (the "Group"), which includes institutional investors holding 60% of the outstanding 8.75% Notes due 2025 (the "Notes") issued by the Province of Entre Rios (the "Province"), has provided the Province with a full term sheet for a proposed restructuring of the Notes.  The term sheet, which is attached as Annex A to this statement, is based upon the restructuring principles articulated by the Group in its public statement dated November 10, 2020, and is consistent with the Basic Principles for restructuring of Argentine provincial debt recently published by the Coalition of Argentine Provincial Bondholders (the "CAPB Basic Principles").

The Group's proposal offers cash flow relief designed to support the Province in meeting its near term fiscal challenges due to the impact of COVID-19.  At the same time, the proposal reflects the Group's confidence in the medium term payment capacity of the Province.  By tailoring the restructuring terms to the specific situation of the Province, the Group seeks to provide appropriate relief to the Province without inflicting unjustified losses on the Province's credit providers. 

The Group stands ready to negotiate with the Province in good faith on the basis of the CAPB Basic Principles.  Finding a consensual resolution to the current debt default is essential to facilitate a resumption of much needed investment flows to the Province and to enable restoration of the Province's access to the international capital markets.  As previously stated, the Steering Committee continues to evaluate its available options, given the lack of a constructive approach from the Province to date.

ANNEX A

RESTRUCTURING OF INTERNATIONAL BONDS OF
THE PROVINCE OF ENTRE RIOS

TERM SHEET

This term sheet sets out the key commercial terms upon which the Province of Entre Rios Ad Hoc Bondholder Group (the "Group") is willing, in principle, to restructure the international bonds issued by the Province of Entre Rios (the "Transaction").  This term sheet is not exhaustive, does not constitute or imply a commitment by the Group to a restructuring transaction nor is it intended to constitute a legally binding agreement between the Province of Entre Rios and the Group.  The completion of the Transaction is subject, among other things, to execution of definitive documentation and satisfaction of customary closing conditions, in each case in a form to be mutually agreed.

White & Case LLP
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SOURCE White & Case LLP