Buenos Aires province will not default and will pay this week $250 million capital plus $27 million interest of bond BP21 originally due on Jan. 26, Governor Axel Kicillof said. The announcement came after failure of negotiations for getting agreement with 75% of bondholder over a delay until May 1, being Fidelity Investments the main group opposed to the deal. The province will use own resources to make payments.
The Government of the province of Buenos Aires proposed today to pay 30% of the bond capital due on January 26 ($ 75 million) and defer the remaining 70% to May 1. Bondholders will also receive the interest corresponding to that postponed capital, if at least 75% of them accept the terms before this Tuesday.
The government of the province of Buenos Aires proposed holders of BP21 bonds for $250 million matured on January 26, the advance payment of interest from January 27 to May 1, if they accept to defer until that date the payment of capital. If bondholders accept the offer by Friday, they will receive next week $28.70 for every $1,000 of deferred capital.