TGN Hits 60% in Restructure

Debt holders of Argentina’s Transportadora de Gas del Norte accepting the company’s restructuring proposal have reached 59.18% participation, TGN says. TGN has reached support agreements with 6 institutional lenders representing 48.68% of the company’s outstanding bonds, in addition to an automated tender offer representing another 10.50%. The gas distributor launched September 8 an improved offer to restructure $347m in debt, after a previous offer brought only 12% support. It is offering new 2016 bonds paying an interest rate of 6.50% rising to 8.50% over the life of the notes, or a cash payout of 40 cents on the dollar for up to $40m. Argentine gas regulators intervened in the management of TGN following a December default, and October 2 extended their intervention another 60 days. Barclays is advising TGN.