Argie Regulators Keep Hands on TGN

Argentina’s gas regulator has extended by 90 days its intervention in the running of Transportadora de Gas del Norte. TGN defaulted on a $22m debt payment in December and is in the process of restructuring $347m in bonds with Barclays as advisor. The government initially appointed a state comptroller in December to help manage TGN for 90 days, amid concern a TGN bankruptcy could disrupt gas service. It has now doubled that period. Under a restructuring launched April 23 and running through June 5, bondholders may exchange two existing series of 2012 bonds for new bonds or up to $30m in cash. There is $141m in series A and $204m in series B notes outstanding, plus $2.4m due to suppliers. TGN is offering new 2021 notes initially paying 2% and stepping up to 6%, or a cash payment of $0.25 per $1.