Disco, the Argentinean unit of troubled Dutch retailer Ahold, has said it will buy back bonds with a face value of US$250m.
Ahold, which has admitted to overstating profits by more than $900m, is in the process of selling its operations in Argentina, Brazil, Chile, Paraguay and Peru.
Once Disco completes the buyback on 22 July of all outstanding bonds in the market, the company will just have debt with banks. Ahold holds between 75% and 80% of Disco’s bonds.
The bond buyback is meant to “clean up liabilities on Disco’s balance sheet as much as possible so that its sale is more attractive,” a trader was quoted by Reuters as saying.