Thursday, April 18, 2024

ECONOMY | 18-08-2020 16:08

Creditors reiterate support for Argentina’s debt restructuring offer

Two of three main bondholder groups confirm they will accede to revised proposal, which was filed with the US Securities and Exchange Commission on Monday.

Two of the three main bondholder groups reiterated their support for Argentina’s debt restructuring proposal on Tuesday, a day after the government filed its official offer with the US Securities and Exchange Commission.

"Following a constructive and successful engagement with the Argentine government to reach an agreement for the restructuring of Argentina’s outstanding debt, the Ad Hoc Argentine Bondholder Group and the Exchange Bondholder Group confirm our support for the amended offer announced today by the Republic of Argentina," the creditors wrote in a statement, referring to efforts to restructure more than US$66 billion in foreign bonds.

The groups, which include the main investment funds engaged in the restructuring effort,  represent about half of total bonds issued under foreign legislation which are subject to the exchange proposal.

After months of wrangling with creditors, officials announced on August 4 that it had reached an agreement with the largest bondholder groups. The accord would push out principal payments and give investors about 55 cents on the dollar, depending on the maturity of the notes, a significant increase on Argentina's original offer of 39 cents.

When filing their offer on Monday, government officials extended the deadline for adherence to the deal until August 28. Results of the proposal will be announced August 31, with a settlement date of September 4.

"The Republic encourages all investors to consider the revised terms and conditions of the invitation and join the Republic to create a sustainable path for the recovery of the Argentine economy," the Economy Ministry, headed by Martín Guzmán, said in a statement to the press.



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