Creditors sue Buenos Aires province after missed payments -filing

RIO DE JANEIRO, BRAZIL – A group of creditors of Argentina’s largest province filed a lawsuit on Tuesday, March 22nd, against the province of Buenos Aires for its missed payments of interest and principal, court documents showed.

The creditors said on Tuesday the province has “failed to make any of the principal or interest payments due on the Notes since June 2020,” according to the filing.

“It is regrettable that the Provincial leadership has chosen to follow a course of confrontation and default with its international bondholders rather than one of negotiation and compromise,” the Steering Committee of the Ad Hoc Group of Buenos Aires Bondholders said in a separate press release.

The plaintiffs in the filing to the Southern District of New York claim to be beneficial owners of about US$1.9 billion of the US$7.1 billion principal amount of all the province notes involved.

The provincial government did not immediately respond to a request for comment.

The Buenos Aires province said earlier this week it had amended its restructuring proposal to creditors, but it was rejected shortly after by GoldenTree Asset Management, one of the province’s largest creditors and a plaintiff in the lawsuit.