Argentina's Mastellone Hermanos gets consents, amends and extends exchange offer to March 26

By Jennifer Chiou

New York, March 15 - Mastellone Hermanos SA said it has once more extended its debt refinancing exchange offer, this time to 5 p.m. ET on March 26.

The offer was previously scheduled to expire on March 12 and, before that, on Feb. 26. It began on Dec. 10.

Affected securities include the company's:

• 8% series A-1 collateralized senior notes due 2012;

• 8% series A-2 collateralized senior notes due 2012;

• 8% series B-2 collateralized senior notes due 2012;

• 8% series C senior notes due 2012;

• Collateralized floating-rate debt due 2011; and

• Collateralized fixed-rate debt due 2013.

The company said it has not paid interest and principal on the collateralized floaters, noting that about $13 million was due on Dec. 31.

As of March 12, the company said it received consents from creditors holding $185.9 million total of the company's existing debt, which amount represents 83.6% of the total principal amount of debt in the exchange offer.

At Feb. 26, the company had received acceptances for the Acuerdo Preventivo Extrajudicial (APE) exchange offer from holders of $180.4 million of its debt, representing 81.1% of the debt.

Since Mastellone has received consents from creditors representing more than 50% of debt, it has reached the necessary threshold to complete an in-APE exchange prior to the reviewing court issuing an initial endorsement of the APE.

The company said that it is also amending its restructuring in order to incentivize the remaining creditors to participate in the exchange offer.

With the amendments, Mastellone said it believes that it will receive consents in excess of the 97% acceptance rate necessary to complete the exchange offer without an APE.

Mastellone Hermanos is a Buenos Aires food company.

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