New York, Houston, 24 November 2020 — Following on global law firm Hogan Lovells’ lead role in the Ecuador sovereign debt restructuring, the firm advised one of the largest Argentine sub-sovereign issuers, the City of Cordoba, in the restructuring of its U.S.$150 million international debt.
This is one of the first successful sub-sovereign restructurings in Argentina. The restructuring also involved the use of a collective action clause to obtain the required consent of the bondholders to more favorable repayment terms for the City, which has been substantially affected by the economic and pandemic crisis in Argentina. Under the new terms, the maturity of the City’s bonds will be extended to 2027, along with a two-year grace period for principal payments and a substantial reduction in interest payments.
New York Capital Markets partner Evan Koster and Houston Project Finance partner Jose Luis Vittor led the transaction and were assisted by New York capital markets associate Juan Moreno. Houston Project Finance and Infrastructure partner Bruno Ciuffetelli and New York Bankruptcy and Restructuring partner Ron Silverman also assisted with restructuring aspects. Santander Investment Securities, advised by Clifford Chance, acted as Solicitation Agent on the restructuring and Guillermo Francos from Argentine law firm Cordova Francos advised the Issuer and Alejandro Perelsztein from Bruchou, Fernandez, Madero and Lombardi, advised the City and the Solicitation Agent on local law aspects of the transaction.
More on the firm’s role advising the Republic of Ecuador on the first-of-its-kind international restructuring is here.
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