The government of the province of Buenos Aires has been ordered to pay $124.8 million to two funds that sued it over the 2020 default, according to a ruling by the Southern District Court of New York. The funds Glacial Capital and TRSE Holdings are demanding payment of $27 million from the administration of Axel Kicillof, as they did not accept the provincial proposal at that time along with the remaining 2%.
The province of Buenos Aires aims to sustainably regularize its debt situation, adapting to the current provincial economic context, according to official sources. In May 2020, the province entered a "default event" by failing to pay a due amount of $115 million, subsequently beginning negotiations for restructuring its debt under foreign legislation, which amounted to $7.148 billion.
Glacial Capital and TRSE Holdings are the only two funds that did not accept the provincial debt restructuring proposal and decided to sue the government. Since the administration of Axel Kicillof, it has been assured that good faith efforts are being made to fully resolve the situation.
The lawsuit against the province of Buenos Aires originated from the lack of adherence of Glacial Capital and TRSE Holdings to the provincial debt exchange implemented in 2020.
