Bondholders filed suit in New York on Tuesday against Argentina's Buenos Aires province after talks broke down over restructuring $7.1 billion in provincial debt as the country’s leftist government seeks a larger accommodation with the International Monetary Fund to regain market access, WSJ Pro Bankruptcy reported. GoldenTree Asset Management LP and other investment firms sought a judgment in the U.S. District Court in New York over the province’s failure to make debt payments stretching back to April of last year. Since then, the investors said, Buenos Aires “has chosen to follow a course of confrontation and default with its international bondholders rather than one of negotiation and compromise.” Buenos Aires stands apart from other Argentine provinces such as Córdoba, Salta and Entre Ríos that have come to terms with creditors this year. Before the COVID-19 pandemic, Argentina signaled it would seek to restructure its sovereign and municipal debt obligations and reached an agreement in August to restructure $65 billion in sovereign bonds. The Buenos Aires Finance Ministry said Tuesday it had been holding talks with creditors in good faith, but their lawsuit now will make it more difficult to reach a resolution.
