MetroGas restructuring approved by 92.1% of debtholders so far; no plans to extend solicitation

By Caroline Salls

Pittsburgh, April 3 - MetroGas SA received consents from 92.1% of the holders 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 to restructure its debt under acuerdo preventivo extrajudicial, a restructuring agreement or a combination of the two as of 5 p.m. ET on Friday, according to a company news release.

The company said it does not expect to extend the solicitation beyond its April 10 expiration date.

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 acuerdo preventivo extrajudicial 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.

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