UPDATE 1-The Argentine province of Buenos Aires again extends the deadline for proposals
(Add context, details)
By Maximilian Heath and Rodrigo Campos
BUENOS AIRES, Aug.6 (Reuters) – The Argentine province of Buenos Aires has extended the deadline for creditors to respond to its latest proposal to restructure around $ 7 billion in bonds as of Aug. 27 compared to Aug. 13, a the province announced Friday in a press release.
“The province encourages all investors to consider the revised terms of its invitation, which provide some relief as the province works towards economic recovery,” the statement said.
The province’s finance ministry said separately that the amendment to the swap offer is part of the deal with GoldenTree Asset Management, the largest creditor, announced on July 21, “and the subsequent support from the major institutional holders of the province “.
It is not clear, however, whether there is sufficient support to force all bondholders to accept the offer, and a final push against this offer by those arguing for better terms is expected.
The local government has extended the invitation deadline for creditors to accept or reject the offer to 5:00 p.m. Central European Time (4:00 p.m. GMT) on August 27 from the last deadline of August 13.
The initial invitation to trade bonds came in April 2020 and the deadlines have been extended by about 20 times.
Most provincial bonds are trading below 50 cents on the dollar and some as low as in the 1930s, and have risen on expectations of a trade from lows reached in mid-March.
(Reporting by Maximilian Heath in Buenos Aires and Rodrigo Campos in New York; editing by Leslie Adler)