02/03/2020 - 7:39
- Clarín.com
- Politics
The Government of the province of Buenos Aires offered on Monday to the creditors of the BP21 bond to pay 30% of the capital that expired on January 26 and postpone the rest. This was reported by the Ministry of Finance and Finance of Buenos Aires.
It is that this Monday expires the term that the Province had for the holders of the BP21 bond to give their consent to postpone until May a maturity of capital for 250 million dollars. For that, the Executive Power requires the guarantee of 75% of the creditors.
In the statement, the Treasury portfolio recalled that "on January 14, 2020, the province of Buenos Aires requested the bond holders USD 750M 10,875% due in 2021 their consent to the postponement until May 1, 2020 of the capital payment due on January 26 for approximately US $ 250 million. "
"By virtue of the accession of a large number of bondholders and exchanges held with institutional funds that have not yet given their consent, but showed goodwill and understanding of the provincial situation, we have modified the proposal to include in this instance the payment of the 30% of the maturity of the capital involved whose postponement is sought, "he said.
Bonus statement by Clarin.com on Scribd
He also explained that if 75% of the outstanding capital of the bonds gives consent, "30% of the capital due on January 26 - approximately US $ will be paid within the grace period stipulated in the bond documentation. S 75 million- and within 5 business days of making the amendment effective, the interest accrued by the capital deferred to May 1 - approximately US $ 5 million -, delaying until May 1, 2020 the payment of the remaining 70% of capital originally due on January 26, 2020 ".
It was stated that this amendment "has immediate effect and the holders of the 2021 bonds have a term until 10 am (Brussels / Luxembourg time) on February 4, 2020 to rule in favor of the proposed modification ."
The Axel Kicillof government clarified that the consents already sent remain valid.
The Minister of Finance and Finance of the Province, Pablo López, said that "this effort will be made with provincial resources, which are scarce," and added that "the Province reaffirms the commitment to address the debt problem, in order to recover the sustainability, quickly and orderly. "
"We must move forward in solving the most urgent issues and turn our efforts to revive the provincial economy," he concluded.
JPE
