A group of bondholders has rejected a proposal from Argentina to restructure tens of billions of dollars in foreign debt, raising the likelihood that the South American nation could enter into default as early as next month, the Wall Street Journal reported. Other bondholders are expected to follow suit to present a united front against the deal. The Argentina Credit Committee — a group that includes mutual funds, insurance companies and asset managers — said today that the offer from President Alberto Fernández’s government fell far short of bondholder expectations. The committee said it hasn’t received “substantiated forward-looking economic and financial information” from Argentina, nor seen feasible economic policies. “The ACC has reviewed Argentina’s proposal and cannot support it,” the group said in a statement. “The ACC invites Argentina to abandon the unilateral route and make time for a meaningful negotiation.” A separate committee of large mutual funds including BlackRock Inc. plans to make a similar announcement shortly. On Friday, Argentina presented a proposal to exchange some $65 billion in foreign bonds into new debt at lower interest rates and with later due dates in a bid to avoid another painful default. The offer involves more than $40 billion in debt relief, mainly through reduced interest payments. It includes a three-year moratorium on foreign-debt payments, with an average coupon of 2.33 percent once interest payments resume.
