Fully organized Argentina creditor committee expected next month

Credit: REUTERS/AGUSTIN MARCARIAN

Investors in Argentina's sovereign and Province of Buenos Aires debt expect to be fully organized into two separate creditor committees sometime in the first two weeks of November, an investor told IFR.

By Miluska Berrospi

NEW YORK, Oct 29 (IFR) - Investors in Argentina's sovereign and Province of Buenos Aires debt expect to be fully organized into two separate creditor committees sometime in the first two weeks of November, an investor told IFR.

Bondholders are currently organizing the two committees, which are expected to exceed 25% of bondholders of the debt, the investor involved in the process said.

Organization of the committee has progressed beyond the early stages as a critical mass of investors interested in participating have come together.

They are also retaining professional financial and legal advisers, according to the investor.

Argentina's President-elect Alberto Fernandez has not yet made any official appointments to his economic or financial cabinet, but investors are vigilant and expect an announcement in the next week or so.

Fernandez won with around 48.1% of the vote over President Mauricio Macri, who drew about 40.4%, in the country's presidential elections last Sunday.

More than US$100bn of Argentine debt hangs in the balance ahead of a probable restructuring. The country has around US$44bn of loans with the International Monetary Fund.

It faces around US$40bn in financing needs for 2020 should the IMF decide against disbursing funds from its loan agreement with the country.

“All three groups are going to need to work together to give the country some breathing room. No one leg is going to have to take the brunt of it,” said the investor, referring to the country’s local law debt, external debt and the official sector, namely the IMF.

(Reporting by Miluska Berrospi Editing by Jack Doran)

((Miluska.Berrospi@thomsonreuters.com;))

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