DJ Argentina's Enargas Extends TGN Intervention Another 60 Days

BUENOS AIRES (Dow Jones)--Argentina's national gas regulator, Enargas, has again extended its intervention in Transportadora de Gas del Norte SA (TGNO2.BA), or TGN, one of Argentina's leading gas distribution companies.

The extension will last for another 60 days.

TGN announced the plan in a letter to the Buenos Aires Stock Exchange Wednesday.

In April TGN said it would restructure $347 million in debt. Before that, in December 2008, TGN defaulted on a $22 million debt payment, leading the government to accuse the company of "grave accounting irregularities" and appoint a state comptroller to "co-manage" the company for 90 days.

Through Enargas, the government has continued to intervene in the company since then.

Government officials said the intervention was necessary to prevent TGN from declaring bankruptcy, which, they said, could complicate its ability to continue providing natural gas services to customers.

A federal court later ruled that Enargas had no right to "co-manage" TGN, though it allowed state officials to stay in the firm and oversee its activities.

Despite the court's ruling, Enargas said in April that it planned to "co-administer" some aspects of the company's work and continue monitoring its finances.

-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com

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(END) Dow Jones Newswires

March 03, 2010 13:06 ET (18:06 GMT)

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