Chubut seeks reprofiling $650 million bonds

Argentina’s Chubut province bonds due 2026 plunged 8 cents to 63.3 cents on the dollar on Friday after its economy minister Oscar Antonena proposed reducing coupons and suspending principal payments for four years on $650 million of the overseas bonds. Out of Chubut’s $855 million total debt, around 80% is held in international bonds.The $650 million of bonds Chubut is seeking to restructure are backed by oil and gas royalties that are paid directly into a trust, which meant the government couldn’t access the funds to pay for public expenses like salaries.

Source: Bloomberg