Province of Cordoba Ad Hoc Bondholder Group Rejects the Province's Latest Amended Consent Solicitation

LONDON, Jan. 4, 2021 /PRNewswire/ -- The Ad Hoc Bondholder Group (the "Group") of the Province of Cordoba (the "Province") rejects the terms of the Province's amended Consent Solicitation (the "Amended Consent Solicitation") announced by the Province on January 1, 2021.  The Amended Consent Solicitation was announced unilaterally by the Province without negotiation or consultation with the Group, and continues to fall short of terms that could be the basis of a consensual resolution. 

The Group is composed of institutional money managers holding blocking positions in each series of the Province's international bonds subject to the Amended Consent Solicitation.  The Group (excluding Schroder Investment Management North America Inc., which is no longer a member of the Group) holds over 50% of the Province's 7.125% Notes due 2021, over 40% of the Province's 7.450% Notes due 2024, and over 30% of the Province's 7.125% Notes due 2027.  Without the support of the Group, it will not be possible for a consent solicitation affecting all or any series of international bonds issued by the Province to be approved.  Simply put, there is no prospect for a restructuring of the bonds to be implemented by the Province other than through good faith discussions with the Group. 

The Amended Consent Solicitation, while representing an improvement on previous terms announced by the Province, fails to account for the strong fiscal position and positive medium term outlook of the Province.  Accordingly, there is no justification for imposing the arbitrary losses on the Province's international investors implied by the Amended Consent Solicitation.  The current trajectory of the Province will lead inevitably to a default on its contractual obligations that will have long-term implications for the Province's future access to the international capital markets.

The Group is prepared to enter into restricted discussions on the request of the Province in the coming days to try to find a consensual resolution.  For such discussions to succeed, they will need to be based upon an objective assessment of the Province's financial position and prospects.  In that context, the Group remains prepared to discuss appropriate adjustments to contractual terms that will provide reasonable near-term relief to help the authorities deal with the effects of the pandemic and create an appropriate maturity runway.

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