Statement of the Committee of the Ad Hoc Group of Bondholders of the Province of Entre Rios

The Committee provided the Province with a formal response to its proposal, which set out three guiding principles that should govern any restructuring of the Province's debt: (i) all unpaid accrued interest to be settled in full at contractual rates at settlement; (ii) the interest on the Notes during an interim relief period should be paid in cash at a rate that is no less than 5%; and (iii) following the interim relief period, the interest on the Notes should return to the contractual rate of 8.75% unless the Province is able to provide collateral to enhance the credit profile of the Notes.

The Committee provided the Province with a formal response to its proposal, which set out three guiding principles that should govern any restructuring of the Province's debt: (i) all unpaid accrued interest to be settled in full at contractual rates at settlement; (ii) the interest on the Notes during an interim relief period should be paid in cash at a rate that is no less than 5%; and (iii) following the interim relief period, the interest on the Notes should return to the contractual rate of 8.75% unless the Province is able to provide collateral to enhance the credit profile of the Notes.

Rather than engage with the Committee, the Province broke off discussions and published the terms of its rejected proposal.  The Committee remains ready and willing to engage with the Province constructively to reach agreement on a restructuring that reflects the Province's actual payment capacity.  In the absence of constructive engagement by the Province, however, the Committee will be forced to pursue alternative approaches to recovery.