Province of La Rioja Bondholders Seek Seizure of the Shares in Banco Rioja and PEA in Satisfaction of their Outstanding Judgments Against the Province

NEW YORK, March 24, 2026 /PRNewswire/ -- Holders (the "Bondholders") of the 8.5% notes due 2028 (the "Green Bonds") issued by Province of La Rioja Bondholders (the "Province"), represented by Quinn, Emanuel Urquhart and Sullivan, LLP, yesterday filed a motion (the "Motion") in the United States District Court for the District of Massachusetts (Case Nos. 26-mc-91134-ADB; 26-mc-91135-ADB) to reach and apply the shares in Banco Rioja SAU ("Banco Rioja") and Parque Eólico Arauco SAPEM and its subsidiaries ("PEA") in satisfaction of their judgments against the Province.

In February 2024, the Province became the first and only province to re-default on its restructured obligations, failing to pay US$16mm of principal due. Since then, the Province has defaulted on four further semiannual payments of principal and interest. 

The Province had no need to default on any payments. A majority of the proceeds of the Green Bonds was used to construct wind farms through PEA, a provincially-owned company. PEA subsequently sold one of its wind parks for US$171mm to Pampa Energia S.A., prior to defaulting on Bondholders. None of the proceeds of that sale were applied to discharge the Province's obligations under the Green Bonds.

Since the default, the Province has failed to make any good faith effort to satisfy its outstanding obligations under the Notes or to restructure the Notes. The United States District Court for the Southern District of New York issued judgments against the province for the missed payments on September 11, 2024 and on July 7, 2025 (the "Judgments"), which have been registered in the District of Massachusetts. The Province failed to satisfy the Judgments and continues to default on payments as they come due.

If the Motion is granted, the Province will be required to hand over the shares in Banco Rioja and in PEA to the Bondholders so that the Bondholders may realize the value of the shares by their sale or otherwise. These holdings are commercial assets of the Province and are subject to seizure.

While La Rioja's neighboring provinces close on landmark FDI projects and build their credibility through punctual debt servicing, the Province languishes in default and receives no large investment. Its administration has only distinguished itself for its failure to drive job creation and economic activity.

Until La Rioja recognizes and takes seriously its obligations, the Bondholders will use all available judicial means to pursue recovery of their lawful claims against the Province. Any potential purchasers of Banco Rioja and PEA should be on notice of the Bondholders' Motion.

Media Contacts:

Quinn Emanuel Urquhart & Sullivan, LLP
Dennis Hranitzky in Salt Lake City and New York
T +1-801-515-7333
[email protected]

Alex Loomis in Boston
T +617-712-7309
[email protected]

SOURCE Ad Hoc Committee of Province of La Rioja Bondholders