| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for MetroGas SA > News item |
MetroGas begins debt restructure consent solicitation in Italy; deadline extended to April 10
By Caroline Salls
Pittsburgh, March 13 - MetroGas SA has started to solicit consents to restructure its debt from holders in Italy of its 9 7/8% series A notes due 2003, 7 3/8% series B notes due 2002, floating-rate series C notes due 2004 and its other unsecured bank debt, according to a company news release.
The company set the consent deadline for debtholders in Italy for April 10, and said it plans to extend the deadline for all other debtholders to April 10 from March 15 to coincide with the Italian solicitation.
If a majority of holders of between 92% and 98% of existing debt deliver consents, the company, at its option, will either restructure by means of an out-of-court restructuring or by means of a combination of out-of-court and APE restructuring.
If holders of a majority of more than 98% of the debt deliver consents, the company will restructure the existing debt by means of an out-of-court restructuring.
Debtholders can choose either a cash option or an exchange option.
Under the cash option, holders will receive cash at the rate of $750 per $1,000 of debt.
The Buenos Aires gas company will only buy up to the equivalent of $160 million principal amount under the cash option. Any excess will be reallocated pro rata to the exchange option.
Under the exchange option, holders can exchange their debt for 8% dollar-denominated series 1 notes due Dec. 31, 2014 at an amount of 100% of their debt or for 3% series 2 notes due Dec. 31, 2014, which can be dollar, euro or peso denominated, at an amount of 105% of the debt.
The 3% notes will step up to 8% after eight years.
The agent is JPMorgan Chase Bank (212 623-5136 or 212 623-6216) for international investors and JPMorgan Chase Bank, Sucursal Buenos Aires (4348-3475 or 4325-8046) in Argentina.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.