Buenos Aires Province's creditors raise lawsuit stakes, add trustee to case

Buenos Aires Province's creditors have stepped up their lawsuit against the region after talks failed last month to restructure US$7.1-billion in foreign debt.

The bondholders have increased their claim by US$1.6 billion and added a trustee of the bonds, US Bank, to the claim, according to documents filed in court for the Southern District of New York.

This reinforced legal measure makes restructuring the province's debt even more difficult. Buenos Aires Province has in default for more than a year. 

Talks between the province and its largest international creditors fell through last month after amended debt restructuring proposals, freshly offered by both sides, were rejected.

Creditors sued the province in New York court in March for more than US$366 million in unpaid principal and interest. La Plata has repeatedly extended a deadline for creditors to accept a debt swap offer originally issued in April 2020.