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ECONOMY | Today 14:34

Creditors agree to debt rework with Buenos Aires metro company

Creditors agree to debt rework with Clisa, holding company behind Buenos Aires metro company operators.

Cia Latinoamericana de Infraestructura y Servicios Corp, the holding company behind Buenos Aires’ metro operators, won extensive support from international bondholders to restructure its debt. 

Investors holding 94 percent of the company’s US$358 million of bonds accepted an offer to swap their securities for new notes, the company said in a statement Tuesday evening. 

The restructuring plan includes an extension on debt maturities and a 25-percent haircut on its dollar-denominated notes due in 2027. The new debt would mature in 2031 and 2034, according to a previously published consent solicitation. Bloomberg News reported earlier that the company had secured enough support for the measure, citing people familiar with the matter.

The bonds due in 2027 last changed hands on Friday at 41.5 cents on the dollar, according to Trace data.

Securing debt holders’ backing puts the firm, known as Clisa, on track to ease its balance sheet woes and positions it to exit default. It also brings to a close a process that began after the public works giant missed an interest payment in August, following a 30-day grace period. 

The deal, which required approval from holders of at least three-fourths of the outstanding debt, is expected to close on Thursday. 

by Kevin Simauchi, Bloomberg

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