Province of Buenos Aires sued in New York by German fund over excluded debt

German investment firm Daniels Invest GmbH has filed a lawsuit in the Southern District of New York demanding payment of €2.5 million and US$866 000. The claim relates to two series of bonds that were left out of the Province of Buenos Aires’ 2021 debt restructuring, which covered about 98 % of the provincial debt.

The province’s restructuring, overseen by Finance Minister Pablo López, exchanged eleven bonds and $7.178 billion of eligible debt, extending maturities and reducing financing costs. The excluded bonds were issued during former Governor María Eugenia Vidal’s tenure (2016‑2017), when the province raised over $5 billion in foreign‑currency debt. Daniels Invest, a “holdout” creditor, rejected the 2021 offer and now seeks full repayment, a tactic watched by other creditors that also declined the exchange.

The lawsuit revives the issue of how the province will address holdout claims, as it has previously resolved similar cases with payments. The outcome may influence the province’s fiscal strategy and the behavior of other non‑participating creditors.