Province of Salta’s $350 Million Sovereign Debt Restructuring

DLA Piper advised the Province of Salta Cleary Gottlieb and Bruchou, Fernández Madero & Lombardi represented Bank of America, as solicitation agent, in the successful restructuring. Reed Smith advised The trusteeThe successful restructuring of the $350 million 9.125% Notes due 2024 (2024 notes) was issued by the Province of Salta (Salta), a province of the Republic of Argentina.

The restructuring of the outstanding 2024 notes resulted from a successful consent solicitation to amend certain terms and conditions of the 2024 notes and the indenture governing the 2024 notes.  The consent solicitation commenced on February 5, 2021, expired on February 19, 2021 and settled on February 24, 2021.  Holders of 95.51% of the aggregate principal amount of the 2024 notes delivered their consent to the proposed amendments, which became binding on all holders of the 2024 notes by operation of the collective action clause in the indenture.

The amendments sought by Salta had the primary goal of restoring debt sustainability levels in light of current conditions and the expected long-lasting effects of the COVID-19 crisis on Argentina generally and on Salta’s economy in particular, as well as the measures undertaken by Salta to date to address such conditions.

DLA Piper advised the Province of Salta with a team including Christopher Paci (Picture), Marcelo Etchebarne, Nicolás Teijeiro, Juan María Rosatto, Andrea Aguirre, Ariel Portnoy,  Justo Segura and Marcos Taiana.

The Cleary team advising Bank of America included partner Manuel Silva (Picture) and associates Antonio Pietrantoni and Jason Benitez. Senior attorney David Stewart Fisher and associate Karl Heiland advised on tax matters.

In Argentina, Bruchou, Fernández Madero & Lombardi advised Bank of America with Alejandro Perelsztein, Cristian Ragucci and Manuel Etchevehere.

Reed Smith advised the trustee with a team including Adam Solowsky.

Involved fees earner: Alejandro Perelsztein – Bruchou, Ferna?ndez Madero & Lombardi; Cristian Ragucci – Bruchou, Ferna?ndez Madero & Lombardi; Jason Benitez – Cleary Gottlieb Steen & Hamilton; Karl Heiland – Cleary Gottlieb Steen & Hamilton; Antonio Pietrantoni – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Andrea Aguirre – DLA Piper; Marcelo Etchebarne – DLA Piper; Christopher Paci – DLA Piper; Ariel Portnoy – DLA Piper; Juan María Rosatto – DLA Piper; Justo Segura – DLA Piper; Marcos Taiana – DLA Piper; Nicolas Teijeiro – DLA Piper;

Law Firms: Bruchou, Ferna?ndez Madero & Lombardi; Cleary Gottlieb Steen & Hamilton; DLA Piper;

Clients: Bank of America; Province of Salta;

Martina Bellini

Author: Martina Bellini