Buenos Aires Creditors Organize as Governor Warns of Cash Crunch
Buenos Aires Creditors Organize as Governor Warns of Cash Crunch
(Bloomberg) -- Holders of bonds issued by Argentina’s Buenos Aires Province have formed a negotiating group after the new governor said officials won’t be able to meet all their obligations over the next month.
The committee is being led by Greylock Capital Management, according to people familiar with the matter who asked not to be identified. It hired Mens Sana Advisors and BroadSpan Capital as financial advisers, according to a statement, which didn’t identify a lead creditor. The group is seeking “timely” talks with the province to ensure that interests of bondholders and other key stakeholders are “considered and protected.”
The province faces $571 million in payments to bondholders in January, and is unlikely to be able to come up with the cash amid a sharp devaluation in the currency and severe economic recession. Governor Axel Kicillof warned Dec. 11 that he doesn’t have enough money to meet debt obligations and pay salaries over the next month, comments that confirmed the worst fears of creditors bracing for a restructuring.
The creditors’ group, which expects to work with provincial Economy Minister Pablo Lopez, doesn’t have a local representative based in Buenos Aires, according to the person familiar with the matter.
To contact the reporters on this story: Carolina Millan in Buenos Aires at cmillanronch@bloomberg.net;Scott Squires in Buenos Aires at ssquires4@bloomberg.net
To contact the editors responsible for this story: Daniel Cancel at dcancel@bloomberg.net, Brendan Walsh, Carolina Wilson
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