Argentina's Buenos Aires Province Extends Deadline for Debt Talks
The province pushed out the deadline, previously set for Friday, after failing to reach a deal with bondholders, but said in a statement that it would "intensify the dialogue with investors who have not yet accepted the proposal" for about $7.148 billion in debt.
"There is a certain margin to introduce changes to the offer and, in turn, respect the sustainability framework drawn up by the province," the province's finance minister, Pablo Lopez, said in a statement, adding that officials remain committed to "good faith" communication in order to arrive at the best possible alternative.
Provincial officials need approval by holders of more than 75% of the debt to move forward with a restructuring proposal. Officials previously invited creditors to submit counter-offers after they rejected the province's original offer.
Ratings agency S&P Global cut Buenos Aires's credit rating to "SD" from "CC" after the province missed the deadline for about a $110 million bond payment on May 14.
The provincial debt crunch hits as the federal government has still not hammered out a restructuring deal on about $65 billion in sovereign bonds, leading to the nation's ninth sovereign default in May.