BROWSE

Argentina creditors seek global support for bond clause changes

A group of Argentina’s creditors has contacted the Institute of International Finance and other global bodies for support to amend legal clauses in its sovereign bond restructuring, a spokesman for the organisation said. Buenos Aires is trying to clinch a deal to restructure around $65 billion in foreign debt by Tuesday, though it is likely to push that deadline back after bondholders grouped behind a counter-proposal, causing an impasse in talks. Specific details of what creditors are seeking the support of the organisations on was unclear. But collective action clauses (CACs), which determine the requirements for any future changes made to the bond agreements, are a key issue in the negotiations. The bondholders, including BlackRock, Ashmore and Fidelity Management and Research, also made informal contact with the International Monetary Fund, U.S. Treasury and the International Capital Market Association, a creditor source told Reuters. The IMF, U.S. Treasury and ICMA did not immediately respond to requests for comment. Although these organisations have no control over how bond contracts are structured, the creditors hope that their support would help to persuade Argentina’s Economy Minister Martin Guzman to agree to changes they want. Guzman said on Thursday that the government’s proposal was the maximum effort it could make, but that there was the “possibility for innovations” with legal clauses, but only with international backing. “That’s not a matter for Argentina and a subset of creditors to decide,” he said during an online conference. Argentina is pushing for enhanced CACs, which allow borrowers to bundle together multiple bonds, making it even harder for minority hold-outs pushing for a better deal to disrupt the process. Enhanced CACs require a single threshold for approval, generally set at 75%. Creditors are worried the government will use the CACs to adopt the “Pac-Man” strategy of attempting to get them on board one at a time. News of the bondholders’ contact efforts was first reported by Bloomberg. (Additional reporting by Adam Jourdan in Buenos Aires; editing by John Stonestreet) Our Standards:The Thomson Reuters Trust Principles.0 : 0narrow-browser-and-phonemedium-browser-and-portrait-tabletlandscape-tabletmedium-wide-browserwide-browser-and-largermedium-browser-and-landscape-tabletmedium-wide-browser-and-largerabove-phoneportrait-tablet-and-aboveabove-portrait-tabletlandscape-tablet-and-abovelandscape-tablet-and-medium-wide-browserportrait-tablet-and-belowlandscape-tablet-and-belowAppsNewslettersAdvertise with UsAdvertising GuidelinesCookiesTerms of UsePrivacyDo Not Sell My Personal InformationAll quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays. © 2020 Reuters. All Rights Reserved. window.RCOM_Data = {"header_j8y5outo9u":{"template":"header","evergreens":[{"url":"https://www.reuters.com/news/world","name":"World","sponsored":false},{"url":"https://www.reuters.com/finance","name":"Business","sponsored":false},{"url":"https://www.reuters.com/finance/markets","name":"Markets","sponsored":false},{"url":"https://www.reuters.com/politics","name":"Politics","sponsored":false},{"url":"https://www.reuters.tv/","name":"TV","sponsored":false}],"topics":[{"url":"https://www.reuters.com/brexit","name":"Brexit","sponsored":false},{"url":"https://www.reuters.com/subjects/sustainable-business","name":"Sustainability","sponsored":false},{"url":"https://www.reuters.com/subjects/myanmar-reporters","name":"Imprisoned In Myanmar","sponsored":false},{"url":"https://www.reuters.com/subjects/charged","name":"Future of Cars","sponsored":false},{"url":"https://www.reuters.com/places/venezuela","name":"Venezuela","sponsored":false},{"url":"https://www.reuters.com/the-world-at-work","name":"World At Work","sponsored":false},{"url":"https://www.reuters.com/breakingviews","name":"Breakingviews","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false},{"url":"","name":"","sponsored":false}],"featured_stories":[{"displayName":"WORLD AT WORK","url":"//www.reuters.com/article/us-health-coronavirus-usa-childcare-anal/coronavirus-child-care-pinch-in-u-s-poses-threat-to-economic-gains-of-working-women-idUSKCN24W2EX","image":"//s2.reutersmedia.net/resources/r/?mu003d02u0026du003d20200731u0026tu003d2u0026iu003d1527893513u0026ru003dLYNXNPEG6U1FG","headline":"Child care pinch in U.S. poses threat to gains of working women"},{"displayName":"BUSINESS","url":"//www.reuters.com/article/us-usa-results-estimates-analysis/u-s-companies-leap-over-low-profit-hurdle-in-coronavirus-hit-quarter-idUSKBN24Y0KO?ilu003d0","image":"//s3.reutersmedia.net/resources/r/?mu003d02u0026du003d20200802u0026tu003d2u0026iu003d1528057321u0026ru003dLYNXMPEG710A6","headline":"U.S. companies leap over low profit hurdle in virus-hit quarter"},{"displayName":"Pictures","url":"//www.reuters.com/news/picture/photos-of-the-month-july-idUSRTX7LOAT","image":"//pictures.reuters.com/Doc/RTR/Media/TR3_UNWATERMARKED/3/8/0/f/RTX7L909.jpg","headline":"Photos of the month"},{"displayName":"World","url":"//www.reuters.com/article/us-italy-bridge/genoas-new-bridge-puts-spotlight-on-how-italy-can-manage-recovery-idUSKBN24Y0FU","image":"//s4.reutersmedia.net/resources/r/?mu003d02u0026du003d20200802u0026tu003d2u0026iu003d1528063325u0026ru003dLYNXMPEG710BV","headline":"New bridge puts spotlight on how Italy can manage recovery"},{"url":"/article/us-health-coronavirus-usa-congress/white-house-says-not-optimistic-on-near-term-deal-for-coronavirus-relief-bill-idUSKBN24Y0H9","image":"//s3.reutersmedia.net/resources/r/?mu003d02u0026du003d20200802u0026tu003d2u0026iu003d1528051327u0026ru003dLYNXMPEG7108M","headline":"White House not optimistic on near-term deal for coronavirus bill"}],"render_key":"header_j8y5outo9u","menu":[{"url":"/home","name":"Home"},{"url":"/finance","name":"Business","children":[{"url":"/finance","name":"Business Home"},{"url":"/legal","name":"Legal"},{"url":"/finance/deals","name":"Deals"},{"url":"/subjects/aerospace-and-defense","name":"Aerospace u0026 Defense"},{"url":"/subjects/banks","name":"Finance"},{"url":"/subjects/autos","name":"Autos"},{"url":"/finance/summits","name":"Reuters Summits"},{"url":"/subjects/sustainable-business","name":"Sustainable Business"},{"url":"/the-world-at-work","name":"The World at Work"}]},{"url":"/finance/markets","name":"Markets","children":[{"url":"/finance/markets","name":"Markets Home"},{"url":"/finance/markets/us","name":"U.S. Markets"},{"url":"/finance/markets/europe","name":"European Markets"},{"url":"/finance/markets/asia","name":"Asian Markets"},{"url":"/finance/global-market-data","name":"Global Market Data"},{"url":"/markets/stocks","name":"Stocks"},{"url":"/markets/bonds","name":"Bonds"},{"url":"/markets/currencies","name":"Currencies"},{"url":"/markets/commodities","name":"Commodities"},{"url":"/finance/funds","name":"Funds"},{"url":"/finance/EarningsUS","name":"Earnings"},{"url":"/finance/markets/dividends","name":"Dividends"},{"url":"/finance/exchange-traded-funds","name":"Exchange-Traded Funds"},{"url":"/subjects/us-lipper-awards","name":"Lipper Awards"},{"url":"https://stockscreener.us.reuters.com/Stock/US/Index?quickscreenu003dgaarp","name":"Stock Screener"},{"url":"https://funds.us.reuters.com/US/screener/screener.asp","name":"Fund Screener"}]},{"url":"/news/world","name":"World","children":[{"url":"/news/world","name":"World Home"},{"url":"/news/us","name":"U.S."},{"url":"/subjects/specialReports","name":"Special Reports"},{"url":"//www.reuters.com/investigates/","name":"Reuters Investigates"},{"url":"/subjects/euro-zone","name":"Euro Zone"},{"url":"/subjects/middle-east","name":"Middle East"},{"url":"/places/china","name":"China"},{"url":"/places/japan","name":"Japan"},{"url":"/places/mexico","name":"Mexico"},{"url":"/places/brazil","name":"Brazil"},{"url":"/places/africa","name":"Africa"},{"url":"/places/russia","name":"Russia"},{"url":"/places/india","name":"India"}]},{"url":"/politics","name":"Politics","children":[{"url":"/politics","name":"Politics Home"},{"url":"/politics/us-election2020","name":"Election 2020"},{"url":"/subjects/supreme-court","name":"Supreme Court"},{"url":"https://graphics.reuters.com/USA-POLLING-TRUMP/0100422Q4HZ/index.html","name":"Polling on the President"}]},{"url":"/news/technology","name":"Tech","children":[{"url":"/news/technology","name":"Technology Home"},{"url":"/news/science","name":"Science"},{"url":"/news/media","name":"Media"},{"url":"/energy-environment","name":"Energy and Environment"}]},{"url":"/breakingviews","name":"Breakingviews","children":[{"url":"/breakingviews","name":"Breakingviews Home"},{"url":"/video/breakingviews","name":"Breakingviews Video"}]},{"url":"/finance/wealth","name":"Wealth","children":[{"url":"/finance/wealth","name":"Wealth Home"},{"url":"/finance/personal-finance/retirement","name":"Retirement"}]},{"url":"/news/lifestyle","name":"Life","children":[{"url":"/news/health","name":"Health"},{"url":"/news/sports/soccer","name":"Soccer"},{"url":"/news/sports","name":"Sports"},{"url":"/news/entertainment/arts","name":"Arts"},{"url":"/news/entertainment","name":"Entertainment"},{"url":"/news/oddlyEnough","name":"Oddly Enough"}]},{"url":"/news/pictures","name":"Pictures","children":[{"url":"/news/pictures","name":"Pictures Home"},{"url":"http://widerimage.reuters.com","name":"The Wider Image"},{"url":"http://widerimage.reuters.com/photographer","name":"Photographers"}]},{"url":"/video","name":"TV"}],"config":{"edition":"BETAUS","lang":"en","ad_slots":{"mobile_first_canvas_hb":"no","inline_flex_mobile_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[300.0,250.0],"fluid"],"mobile_canvas_sizes":[[1100.0,200.0],[1100.0,300.0],[300.0,250.0],[1.0,1.0]],"mobile_mpu2_type":"bizdevmobwebfooter_1","feed_ad_sizes":[[1100.0,375.0],[300.0,212.0],[300.0,250.0],[1.0,1.0],"fluid"],"mobile_canvas_hb":"no","mobile_mpu_type":"mpu","rr_mpu2_type":"bizdev_article_rr2","rr_big2_type":"bizdev_article_rr3","mobile_canvas_type":"leaderboard","rr_big2_sizes":[[300.0,440.0]],"bottom_article_slot1_sizes":[[1100.0,420.0],"fluid"],"rr_big_sizes":[[300.0,462.0],[300.0,372.0],[1.0,1.0]],"mobile_big_sizes":[[300.0,472.0],[1.0,1.0]],"rr_mpu_hb":"yes","bottom_article_slot1_type":"connatix","mobile_first_canvas_type":"leaderboard","inline_flex_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],"fluid"],"inline_native_type":"native","mobile_big_type":"bizdevmobwebfooter","first_canvas_sizes":[[728.0,90.0],[970.0,250.0],[970.0,90.0],[1100.0,100.0],[1.0,1.0]],"inline_canvas_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],"fluid"],"inline_native_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[3020.0,375.0],"fluid"],"canvas_hb":"yes","mobile_first_canvas_sizes":[[1100.0,200.0],[1100.0,100.0],[1.0,1.0]],"canvas_type":"leaderboard","rr_mpu_type":"mpu","bottom_article_slot2_type":"bizdev_article_center","feed_ad_type":"landing","leaderboard_low_type":"leaderboardlow","mobile_mpu2_sizes":[[300.0,250.0],[1.0,1.0]],"bottom_article_slot1_mobile_sizes":[[300.0,450.0],"fluid"],"mobile_feed_ad_sizes":[[1100.0,375.0],[300.0,212.0],[300.0,250.0],[1.0,1.0],"fluid"],"rr_mpu_sizes":[[300.0,250.0],[1.0,1.0]],"bottom_article_slot2_sizes":[[300.0,300.0],[1100.0,420.0],[1.0,1.0],"fluid"],"first_canvas_type":"leaderboard","leaderboard_low_sizes":[[728.0,90.0],[970.0,250.0],[1100.0,100.0],[1100.0,200.0],[1100.0,300.0],[1.0,1.0]],"inline_native_mobile_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[300.0,250.0],"fluid"],"first_canvas_hb":"yes","mobile_mpu_sizes":[[2.0,2.0],[1.0,1.0],[1100.0,375.0],[300.0,250.0],[3020.0,375.0],"fluid"],"canvas_sizes":[[728.0,90.0],[970.0,250.0],[970.0,90.0],[1100.0,100.0],[1100.0,200.0],[1100.0,300.0],[1.0,1.0],[2.0,2.0]],"rr_mpu2_sizes":[[300.0,280.0]],"rr_big_type":"bizdev_article_rr1"}}},"article_list_d7ugqltuel":{"template":"article_list","fisco_kyodo_disclaimer":"","render_key":"article_list_d7ugqltuel","quote_path":"/finance/stocks/overview","tracking_data":{"channel":"Article - Markets","content_type":"Article","content_type_channel":"Article - Markets","content_channel":"Markets - Bonds","topic_channel":"Markets","topic_subchannel":"Bonds","backend_channel":"bondsNews"},"dart_domain":"us.reuters","fisco_kyodo_key":"","sharetools":["twitter","facebook"],"video_url":"https://queso-cdn.prod.reuters.tv/new/index.html","trustBadge_excludedChannels":"false","first_article":{"id":"USL8N2F408V","source":"Reuters","layout_type":"default","channel":{"text":"Bonds News","path":"/news/archive/bondsNews"},"headline":"Argentina creditors seek global support for bond clause changes","authors":[{"name":"Rodrigo Campos","journalist_url":"/journalists/rodrigo-campos"},{"name":"Tom Arnold","journalist_url":"/journalists/tom-arnold"}],"shareUrl":"https://reut.rs/3gnLe1U","published":1596382353,"updated":0,"path":"/article/argentina-debt-restructuring/argentina-creditors-seek-global-support-for-bond-clause-changes-idUSL8N2F408V","location":"NEW YORK/LONDON","body":"u003cpu003eBy Rodrigo Campos and Tom Arnoldu003c/pu003enu003cpu003eNEW YORK/LONDON, Aug 2

Comments are closed.