NEW YORK/BUENOS AIRES (Reuters) – Argentina’s economy minister on Monday told a mediator in the country’s dispute with holdout investors that the U.S. court ruling against the country is “impossible” to fulfill and a stay is necessary in order to reach a solution for all creditors.
The country needs to make a deal with the holdouts who rejected debt restructurings after its 2002 default if it is to avoid a new default just as it struggles with recession and dwindling reserves.
NEW YORK/BUENOS AIRES (Reuters) – Argentina’s Economy Minister, Axel Kicillof, will meet in New York with a court-appointed mediator in the country’s dispute with holdout investors of its bonds at 2:30 p.m. EDT on Monday, the Argentine Economy Ministry said.
The country needs to come to a deal with the holdouts who rejected its debt restructurings in the wake of its 2002 default on $100 billion, in order to avoid a fresh default.
NEW YORK (Reuters) – Bank of New York Mellon, fearful of being sued by Argentine bondholders and unwilling to defy a court order blocking their coupon payments, will seek guidance from U.S. Judge Thomas Griesa on what to do with the money, a source said on Wednesday.
“Following an exchange of letters today, the court asked BNY Mellon to make a formal motion asking for clarification on what actions it should take with the money that the government deposited in its account at the Central Bank of Argentina last week,” said a source with direct knowledge of the situation.
NEW YORK/BUENOS AIRES, July 1 (Reuters) – Argentina’s past
deals to settle claims with Spanish oil major Repsol SA and the
Paris Club of creditor nations could serve as examples of how to
negotiate a settlement to a decade-old debt dispute, one of the
lead holdout bondholders said on Tuesday.
Argentina faces a potential default unless it reaches a deal
with holdout investors by July 30 when it must make a payment on
its restructured sovereign debt. The holdouts rejected previous
restructuring deals Argentina offered after it defaulted on
about $100 billion in 2001-2002.
NEW YORK, July 1 (Reuters) – Argentina’s past deals to
settle claims with Spanish oil major Repsol and the Paris Club
of creditor nations could serve as examples of how to negotiate
a settlement to a decade-old debt dispute, one of the lead
holdout bondholders said on Tuesday.
“The Repsol and Paris Club structures are very good models
for what a settlement might look like with unexchanged
bondholders,” Jay Newman, senior portfolio manager at Elliott
Management, one of the lead holdouts in the sovereign debt
dispute with Argentina, told CNBC TV.
NEW YORK (Reuters) – Holdout investors in Argentine sovereign debt said on Monday they have not met with the government to negotiate a settlement on defaulted debt, and accused the government of refusing to enter talks.
“Argentina’s professed willingness to negotiate with its creditors has proven to be just another broken promise. NML is at the table, ready to talk, but Argentina has refused to negotiate any aspect of this dispute,” said Jay Newman, senior portfolio manager at Elliott Management, which runs NML Capital Ltd, one of the lead holdouts in the case.
UNITED NATIONS, June 25 (Reuters) – Argentina’s Economy
Minister Axel Kicillof warned United Nations diplomats on
Wednesday the country is being pushed toward a new default after
a U.S. Supreme Court decision favored holdout creditors seeking
payment on bonds it defaulted on in 2001-2002.
Referring to those creditors as “vulture funds,” Kicillof
said the June 16 decision by the top U.S. court to deny
Argentina the chance to appeal a lower court ruling means it
faces an insurmountable payment to all bondholders, given it has
just $28.5 billion in foreign currency reserves.
NEW YORK, June 24 (Reuters) – Holdout investors in Argentine
sovereign debt said on Tuesday they would discuss an
accommodation to let the government pay other bondholders facing
a potential default, if negotiations to settle the legal dispute
have made good progress before July 30.
Lawyers representing the holdout investors, led by Elliott
Management’s NML Capital Ltd and Aurelius Capital Management,
also said in a letter to U.S. District Judge Thomas Griesa there
were no grounds to grant Argentina’s request to reinstate a
suspension of his order to make payment.
NEW YORK, June 23 (Reuters) – Optimism over China’s economic
prospects drove the Australian, New Zealand and Canadian dollars
higher on Monday, while the euro struggled to make headway after
some softer business- sentiment surveys.
Stronger-than-expected May U.S. existing home sales data
added to a generally appealing longer-term outlook for the U.S.
dollar, although some analysts are waiting for more confirmation
which would feed into the tightening bias for U.S. monetary
NEW YORK (Reuters) – Argentina may hyperventilate about greedy hedge funds right up to and past the point of another default on $100 billion (£58.7 billion) of bonds, but posturing and talk won’t stop events beyond its control from forcing a settlement with holdout bondholders, whether it’s next week, next month or next year, experts said.
Faced with dwindling foreign exchange reserves, a looming recession, a $6 billion principal and interest payment on another bond that matures next year, the nation can’t risk closing the door on access to international capital markets to solve a coming cash crunch and a potentially even bigger default.