Argentina's Emgasud to ask bondholders to waive reserve funding

By Caroline Salls

Pittsburgh, May 5 - Emgasud SA's board of directors plans to ask holders of the company's $101.6 million of class I series I bonds and $13.69 million of class I series II bonds to waive Emgasud's obligation to fund a coverage ratio reserve in connection with the service and interest repayment on its notes due June 15, according to a news release.

Emgasud said the depreciation of capital and interest of the notes due June 15 reached $34.94 million, which is required to be paid with funds available in the reserve fund and available cash.

The board will hold a special meeting of the shareholders on May 26 to vote on the waiver of the company's obligation to fund the reserve.

Emgasud is a Buenos Aires, Argentina, natural gas distribution and transportation company.

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