Business Context and Reporting Period
This Form 6-K filing by Central Puerto S.A. (Port Central S.A.) is dated December 14, 2020. The report addresses a specific debt event related to a US $180 million loan agreement with Citibank N.A., JP Morgan Chase Bank N.A., and Morgan Stanley Senior Funding INC., originally secured to fund the acquisition of the Brigadier López Plant.
Key Financial Metrics and Debt Status
- Total Loan Amount: US $180 million.
- Overdue Principal Installment: US $36 million (matured on December 14, 2020).
- Interest Status: All interest owed under the loan was paid on December 14, 2020.
- Partial Principal Payment: The Company committed to paying 40% of the overdue US $36 million principal installment (plus accrued interest) by December 18, 2020.
- Liquidity/Cash Flow: The filing does not provide specific cash flow statements or liquidity ratios, only details regarding specific debt service payments.
Material Changes and Events
The Company failed to pay the full US $36 million principal installment due on December 14, 2020, which technically constituted an "Event of Default" under Section 8.1(a) of the Loan Agreement. To address this, the Company submitted a new repayment schedule to the Central Bank of the Republic of Argentina (BCRA) under Communication "A" 7106, proposing a refinancing of the missed installment.
Management Commentary, Risks, and Contingencies
Forbearance Agreement: The Company entered into a Forbearance Agreement with its creditors. Under this agreement:
- Creditors agreed not to initiate judicial or extrajudicial collection actions until December 21, 2020.
- Creditors agreed to negotiate in good faith regarding modifications to the Loan terms before the forbearance period expires.
- The new amortization scheme presented to the BCRA was incorporated into this agreement.
Risks: The primary risk identified is the potential for default proceedings if the negotiated modifications are not finalized or if the partial payment due on December 18, 2020, is not made. The filing does not provide forward-looking guidance on revenue or earnings.
Key Facts for Investor Verification
- Verify whether the 40% partial principal payment was successfully made by the December 18, 2020 deadline.
- Monitor the outcome of the negotiations with creditors scheduled to conclude by December 21, 2020, to determine if the loan terms were modified or if the default was resolved.
- Confirm the status of the refinancing proposal submitted to the BCRA under Communication "A" 7106.
- Check for subsequent filings regarding the full repayment of the remaining 60% of the US $36 million installment.