8th Dec 2005 07:00
BG GROUP plc08 December 2005 Media Information 8 December 2005BG Group announces agreement on debt for equity swap between Gas Argentino S.A. (GASA) and creditors BG Group plc today announced that its subsidiary GASA, the holding company ofMetroGAS S.A. (MetroGAS), has reached agreement with its creditors for acomprehensive restructuring that converts financial indebtedness owed to thosecreditors into (i) a 30% equity interest in GASA and (ii) a 19% equity interestin MetroGAS. The agreement will reduce BG Group's shareholder interest in GASA to 38.3%, andtherefore the company's indirect shareholder interest in MetroGAS will bereduced from 38.5% to 19.5%. BG Group will retain a 6.8% direct interest inMetroGAS. The deal is subject to regulatory approvals and to MetroGAS agreeing anacceptable restructuring with its creditors. There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2004. Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in over20 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'sability to service their primarily US Dollar denominated debt. GASA is the holding company of MetroGAS - the largest natural gas utility inSouth America. BG Group currently holds a 45.11% interest in MetroGAS and actsas technical operator. In early 2002 and due to the Argentine economic crisis, GASA announced thesuspension of all financial debt service payments along with their intention todevelop and propose to their financial creditors a comprehensive plan torestructure all of the companies' financial indebtedness (currently c. US$ 82million). All of the debt within the GASA is non-recourse to BG Group with the creditorsrelying solely on the ability of these companies to service their debt. The GASA creditors are two global hedge funds - Ashmore Funds and MarathonFunds. Approvals for meeting the condition precedents (CPs) of the GASA restructuringagreements 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 forMetroGAS to obtain at least 66.7% support under the existing solicitation fromof its creditors (Solicitation issued 10 November 2005). Enquiries: Communications +44 (0) 118 929 3717Out of hours media mobile: +44 (0) 791 718 5707 Investor Relations Chris Lloyd/Helen Parris/ Kate Bingham +44 (0) 118 929 3025Website: www.bg-group.com - ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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