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ECONOMY | 08-02-2021 15:07

YPF wins support of key creditor group for 2021 bond swap

State energy firm YPF SA has won support of a key creditor for its debt restructuring bond-swap deal after improving its offer.

State energy firm YPF SA has won support of a key creditor for its debt restructuring offer, the company says, after improving its offer.

The Argentine firm announced Sunday that the YPF Ad Hoc Bondholder Group, which claims to have 45 percent of 2021 bonds due on March 23, had indicated it would accept the bond swap proposal after the company agreed to offer a better cash incentive. The deadline to accept the deal has now been pushed back to February 10 (11:59 pm New York time ) as a result.

The group's support increases YPF's chances of avoiding a default next month. The company needs the support of more than 50 percent of bondholders to be able to exchange them.

The Ad Hoc group, led by the law firm Clifford Chance LLP, did not immediately release a statement confirming the news. But YPF's announcement bodes well for the iconic Argentine energy producer, which surprised creditors in January by announcing a plan to restructure US$6.2 billion in debt after the Central Bank denied it access to the dollars it needed to make a payment in March.

YPF and its creditors have held tense negotiations. Last week, the Ad Hoc group rejected an offer submitted February 1. Another group, led by law firms Dechert LLP and DLA Piper, said it supported the company's proposal.

The debt restructuring plans, which come with the firm facing liquidity problems, are part of a move to free up money to increase production at the shale-rich Vaca Muerta formation in Patagonia.

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by Jonathan Gilbert & Scott Squires, Bloomberg

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