MercoPress. South Atlantic News Agency
YPF second shareholder misses 400 million dollars payment to creditor banks
The Eskenazi family joined YPF because of their close links with the Kirchner family Argentina's Petersen Group missed a 400 million dollars payment to creditor banks on Wednesday, which could allow them to seize the shares of oil company YPF backing the loan.
So far, the banks haven't indicated that they plan to seize the shares and talks with the creditors are continuing. Petersen group owes the banks just over 1 billion dollars.
The default comes less than two weeks after Argentina expropriated a 51% stake in YPF from Spain's Repsol YPF SA, putting the Petersen group in a tight spot.
The Eskenazi family's Petersen group holds a 25.5% stake in YPF, which it had acquired by borrowing heavily.
In 2008, the Petersen group financed a 14.9% acquisition of YPF with one billion dollars senior secured loan from a group of banks led by Credit Suisse, according to information posted on the website of law firm Cleary Gottlieb, which represented Petersen in the transaction.
The Petersen group also obtained a 1 billion dollars loan and equity from Repsol.
In 2011, the group purchased an additional 10% stake, funding the deal with a 700 million dollars senior secured loan from a group of banks led by Banco Itau and Credit Suisse. Repsol pitched in with another loan of about 625 million, according to Gottlieb.
The Petersen group was counting on hefty dividends from YPF to make its loan payments. But the Argentine government has said YPF will no longer pay dividends, rather it will reinvest its earnings to boost production.
The terms of the loan stipulate that the nationalization of YPF or a steep drop in its share price could trigger a default on the loans, both of which have now happened.
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Read all commentsWell there you go then. Argentine Peterson Group misses $400 million loan payment and that's news to who???? no one except Credit Suisse. Still, no doubt de fault will all be blamed on them.
May 18th, 2012 - 04:48 am 0If the Petersen group can't get any money off their cronies then what chance does a bank have if they take over the shares?
May 18th, 2012 - 07:34 am 0I can't see why anyone would want to invest in YPF shares when there are no dividends and all investment is being put into increasing the supply of Maximo Kirnchner's creamcakes. The only hope of any return is if Maximo eats so many creamcakes he becomes the worlds fattest man and increases tourism revenue.
OOOPS! It's only been five minutes since CFK stole YPF and already the business is sinking. Can she do anything right?
May 18th, 2012 - 08:04 am 0Commenting for this story is now closed.
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