On July 27, the National Securities Commission (CNV for its acronym in Spanish), issued General Resolution 849/2020, opening for public consultation the regulation of a draft resolution on refinancing of private debt by means of a swap and / or integration in kind. The agency’s goal is to open a 15-day period to receive comments on the initiative.
The CNV indicated that the initiative aims to “provide issuers operating in the capital market environment with the necessary tools to solve or manage their level of indebtedness efficiently.” The idea is to promote the review of corporate bonds placement processes and open up the possibility of integrating new issues with privately negotiable securities.
In order to proceed with this type of exchange, company debts must be included in the financial statements and balances, the offer must be directed to all the pre-existing credits held against the company, and any loans must be canceled after the placement process ends.