On August 17, 2020, the Executive Branch of the Republic of Argentina (the “Executive Branch“), through a press release announced certain terms and conditions of the second amendment (the “Second Amendment”) to the restructuring proposal of public debt issued in foreign currency and under foreign law by the Republic of Argentina (the “Republic“) set forth in its prospectus supplement dated as of April 21, 2020 , as first amended and restated on July 6, 2020, through which the Republic invite holders of certain bonds of the Republic (the “Eligible Bonds“) to exchange those bonds for 12 new bonds to be issued by the Republic (the “New Bonds“), in order to restructure US$66.5 billion of public debt (the “Invitation”).
By means of the Second Amendment, the Republic revised and modified certain the terms and conditions of the Invitation in order to:
(i) modify the interest and principal payment dates on the New Bonds;
(ii) amend the foreign exchange rate to €1 = U.S.$1.1855 and CHF1 = U.S.$1.0988 and €0.9269, for the purposes of determining the principal amount of U.S. dollar-denominated New Bonds to be received by each Holder of euro-denominated and Swiss franc denominated Eligible Bonds;
(iii) amend the modification provisions of the New Bonds to expand the list of reserve matter modifications and specify the future circumstances under which the Republic may redesignate the series of debt securities affected by a reserve matter modification or, if applicable, conduct a “uniformly applicable” modification subsequent to a cross-series modification with two-tier voting or a restructuring exchange offer;
(iv) add an undertaking by the Republic to publish certain debt information on an annual basis;
(v) provide the “Expense Reimbursement Bonds” to compensate the fees and expenses in connection with the Invitation of the advisors of the “Supporting Creditors” (as those terms are defined in the Second Amendment).
In addition, the Republic extended the expiration of the Invitation until 5:00 p.m., New York City time, on August 28, 2020, and established that results announcement date shall be on August 31, 2020 or as early as practicable thereafter, and the execution date, the effective date and the settlement date shall remain on September 4, 2020 or as early as practicable thereafter.
This publication does not constitute a legal opinion on specific issues. If necessary, specialized legal advice should be sought.
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