LONDON, Feb 3 (Reuters) - Argentina’s heavily-indebted province of Buenos Aires (PBA) won the backing of a key group of its creditors on Monday after it added a $75 million sweetener to a payment delay plan.
“The bondholder steering committee formed by a group of large international investment firms who are holders of the existing bonds, as well as other PBA bonds, together with certain additional significant holders have decided to participate in the Amended Consent Solicitation,” the group said in a statement.
Facing a large repayment that had been due on Jan. 26 and a grace period that expired this week, the Buenos Aires province offered to make an earlier $75 million capital payment on a 2021 bond to accept its proposal to delay a larger repayment and avoid the risk of default.
Discussions between the advisors and supporting holders had been “constructive”, the bondholder group’s statement said, with the amended offer indicating that the province intended to engage “good faith negotiations on a comprehensive debt restructuring.”
The group did not disclose how much of the Buenos Aires bond its members, or supporting groups, hold. (Reporting by Karin Strohecker; editing by Marc Jones)