Argentina’s creditors accept new exchange offer

The steering members of the Argentina Creditor Committee (ACC) have confirmed their support for the country’s revised exchange offer for the repayment of its sovereign debt

The ACC, chaired by Grantham Mayo Van Otterloo, confirmed its support on August 17 for the revised exchange offer filed by the Republic of Argentina with the U.S. Securities and Exchange Commission.

In its acceptance of the revised offer, the ACC notes the improved terms contained in the revised exchange offer are consistent with the agreement-in-principle announced on August 4. The ACC further notes the extension of the exchange offer expiry date to August 28, and hopes that the revised terms and extended offer period will contribute to a successful high-participation debt exchange, the ACC said in a press release.

“The ACC encourages all bondholders to carefully consider the terms of the Republic’s revised exchange offer in making their own independent appraisal of the merits and risks of participating in the exchange offer,” it said.

The ACC is advised by UBS Securities and Mens Sana Advisors, as financial advisers, and by Clifford Chance and Orrick, Herrington & Sutcliffe as legal advisers.

Argentina had defaulted on its debt in May for the ninth time, leading to a series of negotiations with its creditors.

“The Republic’s exchange offer may be subject to specific legal or regulatory restrictions in certain jurisdictions,” the ACC’s statement reads.

“None of the members of the ACC or their legal and financial advisers assumes any responsibility for any violation of any such restrictions by any person. The ACC and their legal and financial advisers are not acting as fiduciaries of the Republic or any other person. Furthermore, none of the ACC or their legal and financial advisers is acting as a financial or investment adviser, underwriter, dealer manager, or in any similar capacity for the Republic or any other person,” it adds.

“Each investor is solely responsible for making its own independent appraisal of the merits and risks arising in connection with participating, or not participating, in the proposal. In making an investment decision, each investor must rely on its own examination of the Republic of Argentina and the terms of the exchange offer and the new bonds. Any public offering of the New Bonds in the US will be made by means of a prospectus to be made available by the Republic.”