Argentine Plant Owner Explores Bankruptcy Loan From Bondholders Amid Venue Clash

Argentine power-plant owner Stoneway Capital Ltd. is discussing borrowing money from the senior bondholders challenging the company’s U.S. bankruptcy filing and pushing to relocate the restructuring to Canada, WSJ Pro Bankruptcy reported. Stoneway, seeking to finance its stay in bankruptcy, is discussing potential loan terms with senior bondholders and junior creditors, as well as potential outside lenders, the company’s lead lawyer, Fred Sosnick, said at a virtual hearing on Friday in the U.S. Bankruptcy Court in New York. The bondholders, including BlackRock Inc. and DoubleLine Capital LP, are also seeking to shift Stoneway’s restructuring case back to the Ontario Superior Court of Justice, where the company first filed court proceedings to adjust its debt last year. The judge presiding over the chapter 11 case didn’t issue a ruling Friday on the proper venue for restructuring Stoneway, a holding company with four power plants in Argentina. It filed for bankruptcy in April, facing too much debt and an Argentine Supreme Court ruling that prolonged the closure of a key generation facility. Read more.