Agreement with CAMMESA
Rhea-AI Summary
On May 24, 2024, Central Puerto announced an agreement with CAMMESA to settle debts from economic transactions of December 2023, January, and February 2024. According to the agreement, CAMMESA will pay the December 2023 and January 2024 debts via 'Argentine Republic Bonds in US Dollars Step Up 2038' within 10 working days, and the February 2024 debt with available funds within 48 hours. This agreement results in an estimated consolidated loss of 21,200 million pesos for Central Puerto, as the bonds are valued lower than their nominal worth. Despite this, the company assures that its business operations and financial stability remain unaffected.
Positive
- Central Puerto has secured an agreement to receive payments from CAMMESA, providing some liquidity.
- The February 2024 debt will be settled in cash within 48 hours, ensuring quick resolution of part of the debt.
Negative
- The agreement leads to a consolidated loss of approximately 21,200 million pesos due to the lower market value of the bonds.
- The bonds issued for the December 2023 and January 2024 debts are not valued at their nominal worth, reflecting a financial hit.
News Market Reaction – CEPU
On the day this news was published, CEPU gained 1.39%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
BUENOS AIRES, ARGENTINA / ACCESSWIRE / May 24, 2024 /
Dear Mr./Mrs.,
It is a pleasure to contact you in my capacity as Head of Market Relations of Central Puerto S.A. (the "Company" or "CPSA") in compliance of Section 2, Chapter I, Title XII of CNV Regulations (restated text in 2013 as amended and supplemented) and to inform the investing public that, within the framework of Resolutions 58/2024, 66/2024 and 77/2024 of the Secretariat of Energy issued related with the debts of CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico S.A.) due to the economic transactions for December 2023, January and February 2024, the Company entered into an agreement with CAMMESA (the "Agreement") today whereby they decided that CAMMESA shall pay its debts to the Company as follows:
- The debts corresponding to the economic transactions for December 2023 and January 2024 shall be paid through public securities "ARGENTINE REPUBLIC BONDS IN US DOLLARS STEP UP 20238" (USD BOND 2038 L.A.) with the term of 10 (ten) working days as from the entering of the agreement; and
- The debts corresponding to the economic transactions for February 2024 shall be paid with funds available in the bank accounts authorized in CAMMESA with the term of 48 (forty-eight) hours as from the entering of the agreement.
Since Central Costanera S.A. (Company's subsidiary) accepted the Offer by the Secretariat of Energy, and since the bonds receivable have a rate lower than their nominal value, the entering into the Agreement represents a consolidated loss for Central Puerto S.A. (considering the bond quote as of this date) of approximately 21,200 million pesos.
Finally, we state the payment agreements mentioned above do not affect the ordinary course of business of the Company, its payment capacity nor its financing obtaining capacity.
Contact information:
Legal Affairs Manager
Leonardo Marinaro
Tel:(+54 11) 4317 5000
SOURCE: Central Puerto S.A.
View the original press release on accesswire.com
FAQ
What is the impact of Central Puerto's agreement with CAMMESA?
How will CAMMESA settle its debts to Central Puerto?
Does the agreement with CAMMESA affect Central Puerto's financial stability?
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