Cap Cana, S.A.

Cap Cana Re-Opens Consent Solicitation With Respect to Its 9.625% Senior Secured Notes

    Santo Domingo, Dominican Republic (ots/PRNewswire) -

    Cap Cana, S.A. ("Cap Cana") today announced that it is launching a new consent solicitation (the "Consent Solicitation") with respect to its US$250 million outstanding principal amount of 9.625% Senior Secured Notes due 2013 (the "Notes") by which it is seeking to obtain a waiver of the technical default that resulted from the Company's not depositing in the Debt Service Reserve Account, by January 2, 2009, funds equal to the interest payment on the Notes that comes due on May 3, 2009 (the "Reserve Requirement"), as required under the terms of the indenture governing the Notes (the "Indenture"), and an extension of the period for replenishing the Debt Service Reserve Account to February 24, 2009. Cap Cana is soliciting consents from the holders of record as of January 7, 2009 to approve an amendment to the Indenture.

    Cap Cana intends to launch an exchange offer in January 2009 to provide holders of Notes an option to exchange their Notes. The exchange offer represents part of the Company's comprehensive restructuring and debt reduction plan designed to improve the Company's capital structure and financial position in response to the worldwide downturn in the credit and real estate markets. The Company stated that it is encouraged by the ongoing discussions with holders of the Notes regarding an amicable and proactive restructuring process.

    The purpose of the Consent Solicitation, in addition to obtaining a waiver of the default that arose on January 2, 2009, is to extend the deadline for the deposit of the Reserve Requirement from January 2, 2009 to February 24, 2009, thus providing Cap Cana with sufficient time to complete the contemplated exchange offer.

    The proposed waiver and amendment to the Indenture requires the consent of holders of a majority in aggregate principal amount of the Notes outstanding. The Consent Solicitation will expire at 5:00 p.m., New York City time, on Thursday, January 15, 2009, unless the consent solicitation is extended by Cap Cana, in its sole discretion.

    The terms and conditions of the Consent Solicitation are described in the Consent Solicitation Statement, dated January 7, 2009 (the "Consent Solicitation Statement"), which is being sent to all holders of record as of January 7, 2009. Holders of the Notes may obtain copies of these documents from Weston International Capital Markets LLC by calling 212-888-4560, or in writing at 150 East 58th Street, 15th Floor, New York, NY, 10155, Attention: Cap Cana Consent Solicitation.

    This press release is for informational purposes only and is not a solicitation of consent with respect to any securities of the Company. The Consent Solicitation is only being made pursuant to the consent solicitation documents, including the Consent Solicitation Statement dated January 7, 2009, that have been previously distributed to holders of the Notes. The consent solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "estimates," or similar expressions are intended to identify these forward-looking statements. These statements are based on the current plans and expectations of Cap Cana, S.A. and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements.

    About Cap Cana

    Located on the easternmost tip of the Dominican Republic, Cap Cana is a multiuse luxury resort in the Caribbean with world-class beaches, championship golf courses, yachting facilities and other leisure amenities. The property consists of over 46 square miles (119.9 square kilometers) of land, including a five-mile (eight kilometer) coastline and 2.2 miles (3.5 kilometers) of one of the most pristine beaches in the region.

ots Originaltext: Cap Cana, S.A.
Im Internet recherchierbar:

Miguel Guerrero, Cap Cana, S.A., +1-809-695-5501 x3999,

Weitere Meldungen: Cap Cana, S.A.

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