Cleary Gottlieb represented Bank of America, as solicitation agent, in the successful restructuring of the $350 million 9.125% notes due 2024 (2024 notes) 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.