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Argentina AySA Deal Said to Have Critical Mass to Deter Holdouts

  • Bondholders have majority support to force through swap terms
  • AySA is exchanging $500 million in 2023 bonds for new notes
Building near Puerto Madero in Buenos Aires, Argentina, on Wednesday, Aug. 24, 2022. 

Building near Puerto Madero in Buenos Aires, Argentina, on Wednesday, Aug. 24, 2022. 

Photographer: Erica Canepa/Bloomberg

Any creditors considering holding out for a better deal in a debt restructuring offer from Argentina’s state-owned water utility should probably think again. 

An ad hoc group of investors hold enough of the $500 million of bonds issued by Aguas y Saneamientos Argentinos SA, known as AySA, to force potential holdouts into accepting the deal, according to two people with direct knowledge of the matter.