Stoneway Announces Postponement of Meeting Date and Other Key Dates in Connection with Restructuring Transaction

TORONTO, Dec. 22, 2020 /CNW/ - Stoneway Capital Corporation ("Stoneway" and, together with its subsidiary and parent entities, the "Company") announced today that it is postponing the date of its meeting (the "Noteholders' Meeting") of holders ("Noteholders") of the Company's outstanding 10.000% senior secured notes due 2027 (the "Existing Notes") to consider and vote upon its corporate plan of arrangement (as amended and as may be further amended, the "Plan of Arrangement") to implement the previously announced proposed restructuring transaction (the "Transaction"), to a date to be set in the first quarter of 2021.

The Company, certain interested parties and an ad hoc group of Noteholders holding a substantial majority of the Existing Notes have agreed to postpone the Noteholders' Meeting to consider any implications resulting from a recent decision of the Supreme Court of Justice of Argentina, which remanded the determination of an injunction granted in December 2017 and later revoked in 2018 in respect of the construction of the Company's plants in Matheu, Argentina, back to the Federal Court of Appeal of San Martin (the "Federal Court of Appeal") for reconsideration. The Company and the other parties to the Transaction expect to have additional clarity in respect of the timing of the Transaction once the Federal Court of Appeal has made a ruling on the matter.

In connection with the postponement of the Noteholders' Meeting, the Company has also postponed the date of its hearing before the Ontario Superior Court of Justice (Commercial List) to seek a court order approving the Plan of Arrangement (the "Final Order Hearing") and extended the deadline for Noteholders to make elections through ATOP (the "Election Deadline"), to such dates to be set once the Noteholders' Meeting has been rescheduled.

The Company will provide further details with respect to the Noteholders' Meeting, Final Order Hearing and Election Deadline in a subsequent press release once such details become available.

About Stoneway

Stoneway Group's principal business is the construction, ownership and operation of power generation facilities located in Argentina. 

FORWARD LOOKING STATEMENTS: Certain information contained in this press release may contain forward looking statements within the meaning of applicable securities laws. The use of any of the words "continue", "plan", "propose", "would", "will", "believe", "expect", "position", "anticipate", "improve", "enhance" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this document contains forward-looking statements concerning: the holding and timing of, the provision of additional information relating to, and matters to be considered at, the Noteholders' Meeting;  the timing of and provision of additional information relating to the Final Order Hearing and Election Deadline; and the timing and outcome of the decision of the Federal Court of Appeal.

Forward-looking statements necessarily involve risks, including, without limitation, risks associated with the ability of the Company to implement the Transaction on the terms described in this press release and in previous announcements, the ability of Stoneway to receive all necessary court, third party and stakeholder approvals in order to complete the Transaction; the matters to be considered and voted on at the Noteholders' Meeting; the ability of the Company to operate in the ordinary course during the proceedings under the Canada Business Corporations Act, including with respect to satisfying obligations to service providers, suppliers, contractors and employees; the ability of the Company to continue as a going concern; the ability of the Company to continue to realize its assets and discharge its liabilities and commitments; the Company's future liquidity position and access to capital to fund ongoing operations and obligations (including debt obligations); and the ability of the Company to stabilize its business and financial condition.

Although the Company bases its forward-looking statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this news release.  Other unknown or unpredictable factors also could harm the Company's future results. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as at the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.

SOURCE Stoneway Capital Corporation

David Mack, Director, [phone] (x06), 410 Park Avenue, Suite 900, New York, NY 10022; Juan I. Sánchez Alcázar, Chief Restructuring Officer, Av. Del Libertador 498, 15th floor, Buenos Aires (C1001ABR), Argentina