December 30, 2020

Milbank Advises Deal-Manager on Successful Debt Restructuring for Province of Chubut

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Milbank LLP advised the dealer-manager in connection with an offer to exchange and consent solicitation to be launched by the Province of Chubut (the "Province") in Argentina, with respect to its 7.75% Secured Amortizing Notes due 2026 under Rule 144A. The notes were originally issued by the Province in 2016 and secured by oil and gas royalties with operations in the Province.

The Province launched the restructuring in August in order to reduce debt payments in the short term as Argentina struggles to emerge from a deep economic crisis during the COVID-19 pandemic. The terms of the consent solicitation are a product of extensive, good-faith negotiations between the Province and an ad hoc group of institutional bondholders. Chubut is the latest province to restructure its international bonds with creditors.

The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín, along with associates Gonzalo Guitart, Pablo Richards and Jesus Narvaez and international attorney Marco Zaldivar. The team also included Tax partner Andrew Walker.

Mr. Albarracín said: “Milbank is pleased to have advised the deal-manager in connection with the successful Province of Chubut’s debt restructuring. This allows the Province’s debt repayment schedule to be more sustainable with strong support from its bond investors as over 90% of holders of the existing Notes consented to the proposed amendments.”