BG Group plc today announced that its subsidiary
GASA, the holding company of MetroGAS S.A. (MetroGAS), has
reached agreement with its creditors for a comprehensive restructuring
that converts financial indebtedness owed to those creditors
into (i) a 30% equity interest in GASA and (ii) a 19% equity
interest in MetroGAS.
The agreement will reduce BG Group’s shareholder interest
in GASA to 38.3%, and therefore the company’s indirect
shareholder interest in MetroGAS will be reduced from 38.5%
to 19.5%. BG Group will retain a 6.8% direct interest in MetroGAS.
The deal is subject to regulatory approvals and to MetroGAS
agreeing an acceptable restructuring with its creditors.
Notes to Editors:
BG Group plc is a global natural gas business. Active on five
continents in over 20 countries, it operates four business
segments – Exploration and Production, LNG, Transmission
and Distribution and Power.
The Argentine economic crisis in 2001 and 2002 profoundly
affected GASA’s ability to service their primarily US
Dollar denominated debt.
GASA is the holding company of MetroGAS – the largest
natural gas utility in South America. BG Group currently holds
a 45.11% interest in MetroGAS and acts as technical operator.
In early 2002 and due to the Argentine economic crisis, GASA
announced the suspension of all financial debt service payments
along with their intention to develop and propose to their
financial creditors a comprehensive plan to restructure all
of the companies’ financial indebtedness (currently c.
US$ 82 million).
All of the debt within the GASA is non-recourse to BG Group
with the creditors relying solely on the ability of these companies
to service their debt.
The GASA creditors are two global hedge funds – Ashmore
Funds and Marathon Funds.
Approvals for meeting the condition precedents (CPs) of the
GASA restructuring agreements are required from:
- Ente Nacional Regulador del Gas Natural “ENARGAS” (Argentine
Natural Gas Regulator)
- Comision Nacional de Defensa de la Compentecia “CNDC” (Argentine
Antitrust Commission)
- CNV (Argentina Securities Exchange Commission)
- IGJ (Argentine Superintendence of Corporations)
A further CP for the GASA debt restructuring closing is the
requirement for MetroGAS to obtain at least 66.7% support under
the existing solicitation from of its creditors (Solicitation
issued 10 November 2005).
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Investor Relations
Chris
Lloyd / Helen Parris / Kate Bingham + 44 (0) 118 929 3025
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