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Stoneway Capital Corporation - Negotiation of Potential Restructuring Transaction and Disclosure of Cleansing Material

·4 min read

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NEW YORK, Nov. 6, 2021 /CNW/ - Stoneway Capital Corporation ("Stoneway," and together with its subsidiaries and parent entities, the "Company") and six affiliated debtors (the "Debtors") are currently subject to a jointly-administered reorganization proceeding under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the "Chapter 11 Cases"). In connection with the Chapter 11 Cases and potential restructuring transactions thereunder (the "Potential Transactions") of the Debtors, the Debtors entered into confidentiality agreements (collectively, the "NDAs") with certain holders of the 10.000% senior secured notes due 2027 issued by Stoneway. Pursuant to the NDAs, the Debtors agreed to publicly disclose certain information, including material non-public information (the "Cleansing Material"), upon the occurrence of certain dates or events set forth in the NDAs. In satisfaction of the Debtors' obligations under such NDAs, the Company is making public the Cleansing Materials by attaching them hereto. The Cleansing Materials include the draft restructuring term sheet attached hereto as Exhibit A (https://www.stonewaycap.com/download/781/) (the "Restructuring Term Sheet") and the business plan forecast through 2027 attached hereto as Exhibit B (https://www.stonewaycap.com/download/781/) (the "Preliminary Forecast Summary").

This news release contains forward-looking statements. Forward-looking statements include the Preliminary Forecast Summary dated as of October 25, 2021 as well as statements including the words "believe," "expect," "plans", "may", "will", "should", "could" and words of similar meaning. The Preliminary Forecast Summary speaks only as of its date and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

Discussions regarding the Potential Transactions remain ongoing but have been protracted due to additional transaction related expenses and regulatory issues that have not been fully considered in the Preliminary Forecast Summary, as well as the continued evaluation of tax efficient structures for the Potential Transactions. The Company also is addressing certain recent events related to a damaged turbine at the Company's Luján power plant requiring imminent repair. The assumptions regarding the Preliminary Forecast Summary are expected to be revised, which may result in material revisions to the Preliminary Forecast Summary and, as a result, the Restructuring Term Sheet. Even if the Preliminary Forecast Summary were to be adopted by the Company, the assumptions and estimates underlying the Preliminary Forecast Summary are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties. As a result, no assurances can be given that the events in the Preliminary Forecast Summary will occur or that the projections therein will be achieved. Actual results could differ materially from those projected as a result of certain factors, including changes to the assumptions to the Preliminary Forecast Summary. Additionally, the Company believes that the Preliminary Forecast Summary involves increasingly higher levels of uncertainty the further out the projections extend from their date of preparation.

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 Cases, 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

Cision
Cision

View original content: http://www.newswire.ca/en/releases/archive/November2021/06/c6744.html