New York/Rome, 27 June 2006 —  MetroGAS S.A. (MetroGAS), Argentina’s largest natural gas distribution company, completed the global restructuring of approximately 95% of its unsecured financial indebtedness.  The deal closed on May 12, 2006. Shearman & Sterling represented MetroGAS during the three-year transaction.  MetroGAS has been a client of the firm since 1993.

The US$440 million transaction restructured defaulted US dollar-denominated Series A Notes due 2003, euro-denominated Series B Notes due 2002, US dollar-denominated Series C Notes due 2004 and other US dollar- and Argentine peso-denominated unsecured financial indebtedness of MetroGAS.  It was structured as an unregistered global cash tender offer and exchange offer and a separate cash tender offer and exchange offer in Italy that was registered with the Italian securities authority (CONSOB).  The restructuring was effected pursuant to powers of attorney and support agreements executed by MetroGAS’ creditors by means of which the creditors elected to participate in the cash tender offer, or to receive US dollar- and/or euro-denominated rising rate notes due 2014.   

Attorneys involved include partners Larry Bambino (NY-TX), Roger Baneman (NY-TX), Domenico Fanuele (RO-CM), Don Lonczak (NY-TX) and Antonia Stolper (NY-CM), of counsel John Millard (NY-FG), associates Mimma Barila (NY-CM), Tobia Croff (RO-CM), Fabio Fauceglia (RO-CM), Mark Grinfeld (NY-TX), Jonathan Kellner (NY-CM), Chuin Lee (NY-CM), Sanjeev Magoon (NY-TX), Michael Sunwoo (NY-TX) and Emanuele Trucco (RO-CM), international associate Karina Lengler (NY-CM) and international trainees Vincenzo Armenio (RO-CM), Simone Caruso (RO-CM), Giovanni Cirelli (RO-CM), Francesco Liberatori (RO-CM), Felipe Moro (NY-CM), Maria Romeo (RO-CM), Gabriele Sabato (RO-CM) and Serena Scarabotti (RO-CM).