Creditors support Argentina's amended bond restructuring filing to SEC

Creditors support Argentina's amended bond restructuring filing to SEC

Argentina’s government filed its amended bond restructuring offer to the U.S. Securities and Exchange Commission on Monday and creditors, who now have until Aug. 28 to approve a deal, reaffirmed as expected their support for the offer.

The government had already published the proposal in the official gazette on Sunday after an official decree on Saturday night approved a second round of amendments to the government’s initial offer made back in April, moving further along in its efforts to clinch an agreement.

The country “encourages all investors to consider the revised terms and conditions of its invitation and join in creating a sustainable path for the recovery of Argentina’s economy,” the economy ministry said in a statement.

Some of the largest creditors who took part in the restructuring negotiations, including BlackRock, Ashmore and AllianceBernstein, reaffirmed their support for the latest proposal.

“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.

Argentina and its main creditor groups reached an agreement in principle on Aug. 4 to restructure some $65 billion in distressed sovereign bonds after lengthy negotiations, breaking an impasse that had threatened to derail the talks.

The result of the offer would be announced on Aug. 31 or as soon as possible thereafter, the ministry said, adding it expected execution, the effective date, and the settlement date to be around Sept. 4.

Separately, Buenos Aires - Argentina’s richest and most populous province - on Monday extended a deadline for its own $7 billion debt restructuring until Sept. 11, the local government said in a statement.

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