October 1, 2002
Debt restructuring is invariably a painful process. But successfully completing a restructuring in Argentina these days is a feat in itself. The economy has collapsed, a catastrophe made worse by the bewildering number of regulations that Argentina's government has introduced this year that both scrapped previous rules and often contradicted each other.
Yet in August, Tecpetrol, an oil company owned by Buenos Aires-based conglomerate Grupo Techint, was able to sign Argentina's first restructuring of corporate debt, which was approved by the Argentine Central Bank. Tecpetrol renegotiated $230 million in debts - bonds, floating rate notes, syndicat
After jumping through legal hoops, the Argentine oil company Tecpetrol successfully restructured $230 million in bank loans. Securitized revenues made the new debt palatable to creditors and the government.