Argentina extends debt deadline

Bloomberg

Argentina extended a deadline for creditors to accept a debt restructuring proposal for the fourth time as creditors and the government edge closer towards a deal.
The country will push back the deadline for creditors to accept a debt restructuring offer by one week until June 19, according to an economy ministry statement.
Argentine Economy Minister Martin Guzman said officials would continue negotiating with creditors over the weekend until non-disclosure agreements that have kept the content of the talks private expire on June 16.
“The closing date of the offer is being extended so that we can amend it after Tuesday, when confidentiality agreements expire,” Guzman said.
After defaulting on its debt last month, Argentina’s successive deadline extensions hold little material significance to the talks as investors have said they’re unlikely to take legal action as the negotiations continue. The latest extension was designed to show that the negotiations are moving forward, and that the two sides are closing in on a deal, according to a person with direct knowledge of the matter.
Argentina is locked in talks with creditors to restructure $65 billion in international bonds after it defaulted on its sovereign debt on May 22 for the ninth time in its history. The government has said it couldn’t make good on its foreign debt obligations, even before the country went into lockdown to slow the spread of the coronavirus.
The country’s CDS Panel said its bonds were given a final value of 31.5% in an auction Friday to settle credit-default swaps, triggering a payout of 68.5% on the contracts. Argentina has about $2.2 billion of net notional
outstanding CDS contracts, according to JPMorgan.
The country’s $4.5 billion in bonds due next year edged up 0.3 cent to 41 cents on the dollar. The bonds have traded flat since the country’s default, according to a recommendation from the Emerging Markets Traders Association.