The company ARC Energy is awaiting confirmation from the Government to extend the negotiation period with its creditors. The company requested an extension until February 10, pending final approval from the creditors. This date is crucial to decide on the privatization of the company or the search for new interested parties.
According to a source from ARC Energy, belonging to the Industrial Acquisitions Fund (IAF), the process is progressing and they are optimistic about closing the deal, despite some creditors still not having signed the letter of intent. The request for more time from the Government is due to this situation.
The possible intervention of the Government of Javier Milei has been mentioned to help unlock the negotiation, considering the influence over the Banco Nación and the key role that Deputy Minister of Economy, José Luis Daza, a former executive of the Moneda Group, could play in pressuring the creditors.
If approval is granted, ARC Energy would disburse 27 million dollars to bail out IMPSA. The agreement is expected to close between Friday and Tuesday, which would allow the transfer to be signed on February 10. It is worth noting that ARC Energy and its IAF fund have links to former U.S. President Donald Trump.
The renegotiation plan proposed by ARC Energy includes extending the maturity of a dollar bond from 2028 to 2035, with a significant write-down of the debt principal and a reduction of interest. However, some creditors are demanding payment within a shorter timeframe, which could complicate the negotiation.
Among the main creditors are Export Development Canada, the Andean Development Corporation, the Chilean fund Moneda, international bondholders, the Brazilian group Bradesco, Banco Nación, the Mortgage Bank, BICE, and holders of various series of Negotiable Obligations. Banco Nación is highlighted as the main creditor of IMPSA, and it is expected that with the backing of the Argentine Government, the established deadline will be extended.
