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Clifford Chance advises on successful debt restructuring by the Province of Entre Ríos, Argentina

March 19, 2021

Clifford Chance advises on successful debt restructuring by the Province of Entre Ríos, Argentina

New York: Leading international law firm Clifford Chance has advised HSBC as solicitation agent in the consent solicitation of the Province of Entre Ríos (the Province), directed to holders of the Province's 8.750% Notes due 2025 (the Notes). The Province of Entre Rios represents Argentina's sixth largest provincial economy.

The Province launched a consent solicitation to amend certain terms of the Notes and the indenture governing the Notes (the Proposed Amendments) in February 2021, after reaching an agreement with the Ad Hoc Group of Entre Ríos Bondholders. As of the expiration time of the consent solicitation, holders of the Notes delivered consents for an aggregate principal amount of US$485,755,000, representing approximately 97.15% of the principal amount of Notes outstanding.

As a result, the Province and the trustee entered into a supplemental indenture to effect the Proposed Amendments which became operative on the settlement date. The Proposed Amendments included an extension of the maturity date, and amendments to the interest rate and the amortization schedule of the Notes.

Partners Hugo Triaca in New York and Deborah Zandstra in London co-led this transaction. Special Legal Consultant Pablo Fekete in Washington, DC provided support.

With this closing the firm continues its streak advising landmark bond restructurings in Argentina. Most notably, the team advised the Argentina Creditor Committee on the historic sovereign debt restructuring by the Republic of Argentina and also advised on the successful consent solicitation by the City of Córdoba, Argentina.