Argentina’s Chaco, bondholders agree on 9 3/8% notes restructuring

By Rebecca Melvin

Concord, N.H., April 12 – Argentine province of Chaco and an ad hoc group of bondholders have agreed on the terms of a proposed debt restructuring of the province’s $250 million of 9 3/8% senior notes due in 2024, according to two press releases.

The ad hoc group, represented by VR Advisory Services Ltd., represents about 50% of the issue.

The amendments will provide the province with “appropriate cash flow relief in the form of coupon reductions and maturity re-profiling that will help the province in navigating the unexpected challenges it has faced as a result of the Covid-19 pandemic and allow the province [to reallocate] financial resources to finance urgent important social priorities as well as ensure continued funding of key infrastructure projects,” according to one of the press releases.

The proposed restructuring follows the province’s nonpayment of its debt service on its 2024 notes after the 30-day cure period expired on Sept. 7, 2020.

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