GoldenTree Asset Management, the largest creditor of the Province of Buenos Aires and a long term investor in the Province, announced its support for the restructuring transaction launched by the Province on August 6th. The expiration of the proposal has been postponed to 27th August. As in the case of sovereign bonds, reaching an agreement is complicated by the fact that part of the debt of the province of Buenos Aires is subject to different rules than those of other tranches. These are the so-called collective action clauses (CAC), which establish the percentage of holders who must accept an agreement for it to be carried out. The specific threshold is of vital importance because creditors are divided on the latest proposal, which means that the vote on the agreement could be adjusted. While the $5.2bn of the province’s debt requires the approval of the holders of two-thirds of the outstanding amount, the $1.9bn of bonds issued under previous rules require an 85% agreement to cram down all the holders.

 

Venezuela Venezuela's government and opposition have begun talks in Mexico city focussing on lifting sanctions and holding elections in a bid to end a crippling political and economic crisis. Previous talks in the Dominican Republic in 2018 and Barbados the following year failed to resolve disputes between President Nicolas Maduro and Juan Guaido, the opposition leader. After the start of new talks between the opposition and government, key Venezuelan opposition figure Freddy Guevara, arrested for "treason" and "terrorism" last month, was released on Sunday. In response to media reports he would join the opposition team at the negotiations in Mexico after his release, Guevara said he did not know if he would take part. He told reporters on Sunday he was "not clear on what the limitations are" of his release, the AFP reported. Guevara, elected to parliament in the 2015 vote that gave the opposition control of the assembly under the leadership of Juan Guaido, has been accused in the past by the socialist government of encouraging violence in protests that called for Maduro's departure. Norway, which is facilitating talks between the Venezuelan government and opposition in Mexico, said Sunday initial meetings toward resolving the country's political and economic crisis had been "constructive." The Norwegian ministry said the parties "discussed the establishment of a mechanism for consultation with political and social actors that is as inclusive as possible."They agreed to reconvene from September 3rd to 6th. On 14th August, the EU High Representative for Foreign Affairs and Security Policy, the Secretary of State of the United States of America and the Minister of Foreign Affairs of Canada issued a joint statement calling for the unconditional release of all those unjustly detained for political reasons, for the independence of political parties and for electoral conditions that abide by international standards for democracy, beginning with the local and regional elections scheduled for November 2021.

 

Credit Type / ISIN Indicative price (%)* Venezuela VENZ 13 5/8 08/15/18 10 11 Venezuela VENZ 9 ¼ 09/15/27 10 11 Venezuela VENZ 7 3/4 10/13/19 9.5 10.5 Venezuela VENZ 6 12/09/20 9.5 10.5 Venezuela VENZ 12 3/4 08/23/22 10 11 Venezuela VENZ 9 05/07/23 9.5 10.5 Venezuela VENZ 8 1/4 10/13/24 9.5 10.5 Venezuela VENZ 7.65 04/21/25 9.5 10.5 Venezuela VENZ 11 3/4 10/21/26 10 11 Venezuela VENZ 9 1/4 05/07/28 9.5 10.5 Venezuela VENZ 11.95 08/05/31 10 11 Venezuela VENZ 9 3/8 01/13/34 9.5 10.5 Venezuela VENZ 7 03/31/38 9.5 10.5 Venezuela ICSID Claims Call desk for Prices PDVSA PDVSA 8 1/2 10/27/20 25 28 PDVSA PDVSA 9 11/17/21 4.5 5.5 PDVSA PDVSA 12 3/4 02/17/22 4.5 5.5 PDVSA PDVSA 6 10/28/22 4.5 5.5 PDVSA PDVSA 6 05/16/24 4.5 5.5 PDVSA PDVSA 6 11/15/26 4.5 5.5 PDVSA PDVSA 5 3/8 04/12/27 4.5 5.5 PDVSA PDVSA 9 3/4 05/17/35 4.5 5.5 PDVSA PDVSA 5 1/2 04/12/37 4.5 5.5 PDVSA Promissory Notes Call desk for Prices PDVSA Trade Receivables Call desk for Prices * Indicative price for positions with institutional size only. For smaller sizes please call desk

 

 

Argentina GoldenTree Asset Management,  the largest creditor of the Province of Buenos Aires and a long term investor in the Province, announced its support for the restructuring transaction launched by the Province on August 6th. The expiration of the proposal has been postponed to 27th August. As in the case of sovereign bonds, reaching an agreement is complicated by the fact that part of the debt of the province of Buenos Aires is subject to different rules than those of other tranches. These are the so-called collective action clauses (CAC), which establish the percentage of holders who must accept an agreement for it to be carried out. The specific threshold is of vital importance because creditors are divided on the latest proposal, which means that the vote on the agreement could be adjusted. While the $5.2bn of the province’s debt requires the approval of the holders of two-thirds of the outstanding amount, the $1.9bn of bonds issued under previous rules require an 85% agreement to cram down all the holders.

 

Credit Type / ISIN Indicative price (%)* Argentina ARGENT 0 1/2 07/09/30 36.8 37.6 Argentina ARGENT 8.28 12/31/33 52 54 Argentina ARGENT 7 1/8 06/28/17 40.7 44.6 Argentina ARGENT 3 3/4 12/31/38 35.5 36.5 Argentina ARGENT 1 07/09/29 38.8 39.9 Argentina ARGENT 3.38 12/31/38 35.5 36.5 Argentina ARGENT 7 1/2 04/22/26 45.5 49 Argentina ARGENT 5 5/8 01/26/22 42.2 48.5 Argentina ARGENT 1 1/8 07/09/35 32.9 33.5 Argentina ARGENT 6 7/8 01/26/27 42.1 45.9 Argentina ARGENT 6 7/8 01/11/48 42.1 47.1 Argentina ARGENT 2 1/2 07/09/41 37.9 38.1 Argentina ARGENT 2 01/09/38 39.7 40.1 Argentina ARGENT 1 1/8 07/09/46 33.5 34.3 Argentina ARGENT 4 5/8 01/11/23 42 51.3 Province of Buenos Aires BUENOS 7 7/8 06/15/27 48.4 51.4 Province of Buenos Aires BUENOS 9.95 06/09/21 44.2 45.9 Province of Buenos Aires BUENOS 6 1/2 02/15/23 46.2 49 Province of Buenos Aires BUENOS 4 05/15/35 38 40.5 Province of Buenos Aires BUENOS 9 5/8 04/18/28 49.1 53.3 YPF YPFDAR 8 1/2 07/28/25 82.3 84.5 YPF YPFDAR 8 3/4 04/04/24 89.3 91.5 YPF YPFDAR 6.95 07/21/27 72.9 74.7 YPF YPFDAR 7 12/15/47 65.9 68.1 YPF YPFDAR 8 1/2 06/27/29 74.1 75.6 Banco Macro BMAAR 6 3/4 11/04/26 84.2 86 * Indicative price for positions with institutional size only. For smaller sizes please call desk