The Central Bank: economic activity in Brazil grew in November, but at the slowest rate in 7 months

Bloomberg

Oaktree, BlackRock will be among YPF’s bond-holder groups

(Bloomberg) – Regulated mutual funds such as Oaktree Capital Management and BlackRock Inc. In two negotiating groups with YPF SA, after the Argentine oil company proposed a debt swap that would allow it to control losses, according to people familiar with the matter, people who asked not to participate said BlackRock, which is part of a group of investors with experience in the markets Startups such as Ashmore Group Plc, Invesco Ltd. , She turned to law firm White & Case LLP for advice on the conversations. It is specified because the information is private. Representatives of the two firms declined to comment. The other group receiving advice from law firms Dechert LLP and DLA Piper LLP is made up of loan funds, including Howard Marks Oaktree. Together, its members hold more than $ 1 billion in YPF bonds, including more than 30% of a specific slice of debt, people familiar with the matter said. People said in terms of total equity, it’s smaller than White & Case Group. A representative for Oaktree declined to comment. Creditors began organizing after the government-controlled Argentine oil company launched a proposed swap on January 7 for $ 6 billion in international debt, including $ 413 million in bonds with a maturity in March. Offering new bonds without payment over the next two years could lead to net present value losses close to 20% in some bonds, according to estimates. “The committee calls on the YPF to direct its efforts to improve the return offered for changing the old 2021 bonds,” Deckert’s attorney Solomon Noh wrote in a letter to YPF reviewed by Bloomberg. “Committee members will be available to share their views on potential improvements that could be made.” YPF, unable to persuade the central bank to sell it for the dollars it needs to make short-term debt payments and seeking to boost investment to reverse years of declining production, offered three new bonds that would not pay any interest until 2023 for seven bonds. Neither group is planning to accept the offer and their main focus, for now, is working with the company on a better deal, people said. Some people said the two groups are in contact and could eventually merge, and the proposed swap comes four months after the central bank asked companies with more than $ 1 million in monthly debt payments through March to find a way. To delay those obligations. While creditors expected to renegotiate short-term debt, the decision to swap all YPF international bonds came as a surprise, people said. Visit us at bloomberg.com, subscribe now to stay on top of the most trusted business news resource © 2021 Bloomberg LP