Updated 11/03/2020 10:41
A group of bondholders in the province of Buenos Aires said on Monday that they hired legal advice due to the
"lack of constructive commitment"
from the Axel Kicillof government in the negotiations to restructure bonds for around US $ 7 billion, Reuters reported. .
The Ad Hoc Group of Bondholders, which represents more than 40 institutions that
own more than 49% of the province's foreign debt
, said in a statement that its new legal advisor and an investment management firm
would evaluate "all options available "
to advance the restructuring.
Until now, there have been negotiations between the Province and its creditors, but the mention of lawyers suggests that - without an agreement - the relationship could go up a notch and enter legal terrain.
The province of Buenos Aires extended the deadline several times to reach an agreement on debt restructuring, even when the national government managed to restructure almost $ 110 billion in foreign currency bonds.
The bondholders rejected a previous debt offer from the province.
"The province has now extended the acceptance deadline of its unilateral offer several times, despite the constant message from bondholders that
the offer does not accurately reflect the province's ability to pay
and is therefore not the basis for a consensual solution, "said the bondholders' statement.
"There is no basis to think that further extensions to this failed offer could lead to a positive result," they added.
The group of bondholders said it was still
"ready and willing" to enter into good faith negotiations
with the province.
The Buenos Aires Executive, in the current negotiation, accumulates several breaches of bonds that are within the exchange.
Until now, none of the creditors has requested that it be declared in default in the middle of the negotiation, but that could change with the hiring of lawyers.
The last extension extended the negotiations until
next Friday, November 6.
the eighth extension
of the talks between the Province and the creditors.
Kicillof extends the provincial debt settlement deadline until October 9
Debt: Mendoza agreed with the bondholders and is the first province to close an exchange