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The deadline to agree with the creditors expired and Axel Kicillof will give a press conference

2020-02-04T15:40:09.241Z


The governor seeks to postpone the payment of a maturity of US $ 250 million.


02/04/2020 - 12:23

  • Clarín.com
  • Economy
  • Economy

At 12 o'clock the deadline for the province of Buenos Aires reached an agreement to postpone the capital of a US $ 250 million bond that had to be paid on January 26. Axel Kicillof had to gather the consent of 75% of the bondholders to be able to delay the disbursement, an objective that was not easy to reach and whose deadline had four postponements.

Now, the governor will report what the result was , at a press conference announced for 12.30, half an hour after the last deadline for creditors to give their opinion. The final deadline to pay is Wednesday, February 5.

The Province of Buenos Aires originally had to pay US $ 250 million of capital and US $ 27 million of interest on the BP21 bond. As Kicillof sought to tie the renegotiation of Buenos Aires debt to the national, he proposed to the bondholders to pay them interest but asked them to give him four months of grace to disburse the capital.

The response was not positive and the former Minister of Economy was forced to postpone the acceptance period several times , while giving creditors two "sweeteners" to try to attract them.

First, he offered to advance the payment of interest that would correspond to postpone the debt from January to May. As this proposal failed to convince the reluctant bondholders, he added the payment of 30% of the capital . Even so, he had to postpone the deadline to give consent by noon on Tuesday.

Although he got the support of several of the bondholders, the fund that was planted with more force from the beginning was Fidelity, which has about 16% of the titles in question.


Source: clarin

All business articles on 2020-02-04

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