Orrick orchestrates Argentina’s debt restructuring

Orrick has represented the steering members of the Argentina Creditor Committee (ACC) on reaching an agreement in principle between the Republic of Argentina and its supporting creditors, which include the ACC.

The terms agreed are part of the restructuring of the country’s $65 billion of foreign currency bonds, and the agreement puts an end to months of wrangling between the government and its creditors.

The ACC was engaged in the negotiations on providing Argentina, Latin America’s third-largest economy, with the debt relief needed to allow the country’s economy to absorb the near-term challenges from the COVID-19 pandemic, while Argentina continues to engage in the economic reforms necessary to resume economic growth.

Orrick’s Of Counsel Thomas Laryea (pictured), who represented the ACC said, “Every Argentina debt restructuring over the last decades has raised some challenging legal and financial issues and this one was no exception.”

“With the restructuring of the bulk of the Republic debt close to resolution, this will pave the way for the pending restructuring of the debt of the Argentina provinces and the inevitable refinancings and restructurings in the Argentine corporate sector,” he added.

Argentina had defaulted on its debt payments in May for the ninth time, and which was followed by months of negotiations with its bondholders, with an agreement reached on August 4, the deadline set by creditors to resolve the issue. 

Following the agreement, Argentina’s Economy Ministry said the deal would allow members of the creditor groups and other bondholders to support the debt restructuring proposal and grant Argentina significant debt relief.

The bonds represent around a fifth of the country’s overall $324 billion debt burden, which amounts to around 90 per cent of its GDP.