Central Termica Loma de la Lata SA, owned by Argentina’s biggest electricity company, will meet with bondholders in an attempt to restructure the terms of its 2015 bonds.
La Lata, as the company owned by Pampa Energia SA (PAMP) is known, will have the meeting on March 1 in Buenos Aires to discuss changing its interest payments, it said in a note sent to the Argentine regulator.
On Nov. 23, the company said an electric storm halted its TurboVapor unit, prompting Moody’s Investors Service and Fitch Ratings analysts to say La Lata may struggle to service the bonds, as the damaged turbine accounts for almost 90 percent of the company’s earnings before interest, taxes, depreciation and amortization, or Ebitda.
Loma de la Lata has $166 million of 2015 unsecured notes outstanding, according to data compiled by Bloomberg.
The damaged turbine was sent to Germany for repairs and should be back and operating in a matter of days, a company official who can’t be named according to the company’s internal policy said. He declined to comment on new terms for the bonds.
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