Stoneway Capital Corporation - Termination of Amended and Restated Restructuring Support Agreement and Commencement of Chapter 11 Cases

NEW YORK, July 9, 2021 /CNW/ - The Restructuring Support Agreement dated as of September 21, 2020, amended November 20, 2020, and amended again March 15, 2021 (the "RSA"), entered into by Stoneway Capital Corporation ("Stoneway," and together with its subsidiaries and parent entities, the "Company") and an ad hoc group of note holders holding a substantial majority of the Company's 10.000% Senior Secured Notes due 2027 (the "Existing Notes") in connection with the Company's previously announced proposed restructuring transaction (the "Transaction") intended to have been implemented pursuant to a corporate plan of arrangement (the "Plan") under the Canada Business Corporations Act (the proceeding thereunder, the "CBCA Proceeding") automatically terminated on March 31, 2021. 

On April 7, 2021, Stoneway and five affiliated debtors (the "Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Debtors' Chapter 11 cases (the "Chapter 11 Cases") are pending before the Honorable Judge James L. Garrity, Jr. and are jointly administered under Case No. 21-10646.  The Debtors believe that the CBCA Proceeding was abandoned on April 15 such that it is no longer pending.  As a result, no meeting of holders of Existing Notes to consider and vote on the Plan is currently contemplated, and all elections made on the Depository Trust & Clearing Corporation's Automated Tender Offer Program in connection with the Transaction may be considered cancelled. 

About Stoneway

The Company'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.

Forward-looking statements necessarily involve risks, including, without limitation, risks associated with the ability of the Company to operate in the ordinary course during the Chapter 11 proceedings, 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; For further information regarding the Chapter 11 Cases, please contact: Prime Clerk, [phone], https://cases.primeclerk.com/StonewayCapital