Buenos Aires Sweetens Deal for Bondholders Ahead of Deadline
- Offers to pay interest accrued on deferred principal payment
- Creditors have until Jan. 31 to accept the modified terms
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The Province of Buenos Aires improved the terms it’s offering bondholders if they agree to accept delayed payments, an about-face from the cash-strapped government after its first overture failed to attract sufficient support.
In exchange for pushing back the deadline on a $250 million principal payment, investors would receive an extra $7.2 million in interest, according to the offer revealed Monday. Previously, officials were asking creditors to sign off on the three-month delay without any additional compensation.