Metrogas Flags Default Risk

Argentina’s Metrogas may be the next domestic to seek a debt restructuring, following fellow gas utility TGN. “If and when we default, the government would be intervening for sure in the same way they’ve intervened in TGN,” CEO Andres Cordero said in an earnings conference call Thursday. Metrogas has yet made no definitive plans to default, though it has been pushing regulators to raise frozen tariffs to be more in line with operating costs, and prevent its financial situation from deteriorating. Metrogas has $225m in debt outstanding. TGN missed an interest payment in December 2008, prompting the government to intervene in its management, and is offering its debt holders a $347m restructuring.