US Court rules against Argentina: all bondholders must be treated equally, including hold outs
US appeals court ruled Argentina discriminated against bondholders who refused to take part in massive debt restructurings in 2005 and 2010 by deciding to pay them later than bondholders who agreed to participate.
Friday’s decision by the 2nd US Circuit Court of Appeals in New York stems from Argentina's 100 billion dollars default in 2002, and could affect how easily countries trying to extricate themselves from sovereign debt crises might in the future fend off angry creditors.
A unanimous three-judge appeals court panel said that in conducting the restructurings, Argentina violated a provision in the bonds that required it to treat bondholders equally, even if they chose to hold out.
It said US District Judge Thomas Griesa in Manhattan correctly issued injunctions in February requiring equal treatment for holdouts, including NML Capital Ltd and the Aurelius Capital Management funds that hold 1.4 billion dollars of defaulted debt.
Argentina claimed that upholding Griesa’s rulings would undermine its debt agreements, trigger a new financial crisis in the republic and make it impossible for countries including Greece and Spain to restructure their debt in the future.
“Nothing in the record supports Argentina's blanket assertion that the injunctions will plunge the Republic into a new financial and economic crisis,” Circuit Judge Barrington Parker wrote for the panel agreeing with Judge Griesa that with more than 40 billion dollars in foreign reserves, Argentina has the ability to pay the holdouts
“We hold that Argentina breached its promise,” the appellate court said, summarizing a 29-page ruling that could make it difficult for Argentina to use the US financial system unless it complies.
Argentine bonds of all kinds sank after the ruling, especially debt paid in dollars, increasing borrowing costs for the country's national and provincial governments that are already much higher than other countries', since the country's existing debt is rated far below investment-grade.
Griesa said any financial institution that processes Argentina's payments to the holders of restructured bonds must ensure that the holdouts are paid an equal amount to avoid violating the court's order. Effectively, this would force US banks to stop the payments unless Argentina proves it's complying with the ruling.
The appeals court sent the case back to Griesa’s court to clarify how a payment formula set by the judge is intended to work and to determine how the orders apply to intermediary banks and other third parties.
NML Capital Ltd. is the investment fund that impounded the Argentine Navy training frigate ARA Libertad which remains retained in Ghana. The parent company of NML is billionaire Paul Singer's Elliott Capital Management
The case is NML Capital Ltd. v. Republic of Argentina, 12-00105, US Court of Appeals for the Second Circuit (Manhattan).
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It's said that those who try to dig themselves out of a hole, only dig themselves deeper........
Case in point.........Argentina!!!!!! Anyone want to buy a ship?
NML Capital Ltd. v. Republic of Argentina!!!
Billed as the fight of 2012. some say that NML Capital Ltd. is punching above it's weight on this one and Argentina will win it hands down on point scoring and appealing to the crowd but the smart money is so far on NML Capital Ltd.
YES Ladies and Gentlemen let the fight begin!!!
Good old fashion debt vs International prestige!!! book your tickets!!!
Oh my oh my poor old asslips!!!
www.imf.org/external/np/exr/facts/hipc.htm
Funny thing this, if I remember correctly, Nestor put in a clause in teh reissued bonds that if at anytime a old bondholder got better terms the new bondholders would be eligible to receive the same terms.
Hmm I smell another default.
There were five Judges in London.
There was a Judge in Accra.
THERE ARE THREE BRAVE JUDGES IN NEW YORK
Great: strong determination and much wisdom was needed to master that disputed topic , keeping in sharp focus the basic principles of justice under the heavy political lobbying with a different bias, but they have been brave enough.
BRAVO! It is a milestone judgment!
There is no procedures on what to do so it is taking years to work out some sort of collection scheme or forcing payments from other means.
It is going to get worked out.
Time is on the side of the bondholders not Argentina
The bondholders can outwait CFK.
Argentina will pay eventually and the interest keeps going up everyday.
She is a fool not to have dealt with this years ago.
But she proves to be more of a fool everyday.
However it serves no purpose for Argentina to collapse into the abyss again. Creditors will not get paid, all of South America will be affected and ordinary Argentines will be pushed back into poverty for another generation.
It's still unclear how much Argentina is unwilling and how much it is unable to settle it's debts. There's talk of $45bn reserves but why is there a desperate dollar clamp if there are enough dollars to settle? I can only assume that as mentioned above it is because if Argentina settles the hold-outs it will be compelled to treat the others the same which would be a massive increase in the total debt. Otherwise what are the issues?
Argentina needs wise technocratic leadership and to abandon CFKs pantomime. However it is also unclear to me whether there are such people within national politics. I get the impression you have to be fluent in the pantomime to get anywhere in that political culture.
I'd be interested to know what GM make of this 24 hours after they announced their investment.
Well, well, living up to your tag names I have given you Think.
“The Government of Argentina disagrees.... We appeal, your Honour.”
On what substantive LEGAL grounds? You CANNOT appeal an appeal court unless it on the grounds they did not follow the law –NOT because AG disagrees. Who is interested in what jerk-offs like you and your so called ‘government’ think, Think? STICK TO THE LAW.
FFS it’s getting boring listening to the whining of the argies just because they do not know OR will not accept the law.
Argentina keeps (correctly) disregarding foreign courts with no appointed power on Argentine soil, they don't get paid.
Argentine stops using the US and European banking system (the world is starting to do that anyway as who trust US banks and Europe/UK are collapsing anyway), they don't get paid.
The hold outs somehow succeed and force Argentina to pay them back and as a result to repay in full to all the other bondholders, the country can't pay them back. They don't get paid.
It's funny how you pathetic losers are baying how Argentina is so evil because it doesn't want to negotiate in “good faith”... and yet here you are the Muppets, all frothing like rabid foxes how Argentina is supposedly going to be ruined, the country plundered peacemeal,and the people made to suffer... how? By rooting on a policy of the hold outs of no-negotiation!... so you want the other side to negotiate but not yours.
Good, Christian people you are. hahahaha.
And they still won't get paid!
And the effects on Argentina will be negligible as the country for practical purposes has that status when it comes to international bond markets. So any default will have minimal real damage since in de facto terms the economy already operates near or around that scenario. So the actual economic effects will be much much more reduced than 2001 when the whole economy was far more leveraged on debt.
So in the real world default or no default its the same thing. The hold-outs won't ever see a cent.
And they still won't get any investment!
Anyone care for YPF shares going for a bird!!!
Cheap, cheap, cheap, cheap that is.
Can't even give them away, best comedy show in town.
“Christina Wonka and chocolate Factory.”
That's all fine, as Sinopec is about to buy the 57% Repsol holds...
Why do I feel that I might be in for a history lesson, from the catastrophic world events of the early C20.
US has no mental of even one tenth Argentina has.
keep sleeping away,Argentina has taken step before.
@14 Here's some thoughts for you. No argie asset can EVER leave argieland. “Foreign” businesses operating in argieland require their profits to be paid into “foreign” accounts. Failure to pay means the company “exports” all is equipment and leaves. Recovering all possible monies by ceasing to pay argie workers or argie taxes. All argie diplomatic missions closed and given 48 hours to leave. No argies permitted to enter other countries. Although other LatAm countries might permit the entry of the “wandering poor”. All argie vessels subject to arrest and seizure, including cargo, on sight. See how easy it would be? All it needs is for other countries to follow your examples.
@23 Look at us! We're wonderful! We can operate in the world without following any of the world's rules! Yeah. Right up to the point when “the world” says that you've taken the piss once too often. The world has been very gentle with argieland. Just take a look at what the world is doing to one of your “friends”. Iran. Let's watch what happens when the world decides to embargo argieland.
For all i understand you mean the recent wranglings of some British banks with US authorities.
A little oil and gas company out of Argentina found out that the door was wide open to them and they set about getting into a key position in the Caspian Basin. In spite of the best efforts of Bush and Cheney, this company just keeps on getting things done and getting bigger every day.
These are the published facts from that area, long before the US could get in the door.
v January 1992: Gas exploration rights for Yashlar block in eastern Turkmenistan awarded to Argentine firm; Bridas Production profits to be split 50-50 between Bridas and Turkmenistan government.
v February 1993: Bridas awarded Keimir Oil and Gas Block in western Turkmenistan. 75-25 split in profits, in favor of Bridas.
v 1995 Bridas Corporation meets Taliban for first time to commence negotiations.
v 1995 Unocal and US Government attempting to pressure Taliban to abandon contract negotiations with Bridas and pressure Turkmenistan regarding Bridas contracts.
v October 1995: President Niyazov (Turkmenistan) signs agreement in New York with Unocal/Delta (Saudi investors). Turkmenistan starts jerking Bridas around on its Oil Contracts with that government.
In 1989 Unocal was acquired by the government-owned Petroleos of Venezuela. That happened under the George H W Bush administration and was approved by CFIUS and him. It was not until 2007 that Venezuela sold Unocal to Chevron and distanced themselves from further US involvement.
I have maintained that Unocal might not be the right name as to who was being so opposed to Bridas Corporation. That is because Venezuela and Argentina get along just fine.
rense.com/general82/wounds.htm
What I don't understand is how apparently ratiotinating people like you (probably only one of three in this entire website), love talking about the responsibility of countries and individuals to pay back their debts and be “honorable”, how the hammer must be dropped on a person that does not pay their car, cheats on loans... or countries that do the same.
.... but enunciate the equivalent of intergalactic vacuum about COMPANIES, BANK, and INVESTMENT FUNDS that cheat, like, and go bankrupt and do not pay everything back.
You people are a bunch of ideological crony capitalists. Individuals, and sovereign states, governments, and families have one set of rules; companies, bankers, and vulture funds have another. They can break the law, gamble all the money they promised to hold with fiduciary trust... and not only do they not have to return a cent, they either are let to falter without investors seeing anything back, or are bailed out by taxpayers. And no one goes to jail.
(may I remind you that for the 2008 crisis in Europe and the USA NOT ONE PERSON HAS GONE TO PRISON).
You are quack people.
you sound drunk!
Make sure you show up at the one in Toronto, I'll bring you a coffee!
My opinion about the vulture tax for import at #32 still stands.
VIVA CFK!
You said we knew who you are and to come down and see you, sounds to me like an invitation. Then you are going to give me an “ Arse whooping” and apparently knock out my teeth. Well, name the time and place and certainly bring all your friends to help you. As a younger man I was employed as a bouncer in a bar and one of my jobs was to eject the chugs who had gotten into the firewater, I'm still I could still take care of and Ricky Ricardo who has the stupidity to take me on. Bring it on Alex boy!!
He won't come down to see you. Besides being afraid, he's not able to travel to the US. No passport, I think. At least, not a Canadian one, and he would not be able to get back into Canada. He wouldn't want that - his only option left would be to move back to Argentina.
I don't think that he's ever travelled anywhere, in years. He has no idea about other cultures.
Maybe you want to instruct him - how about 'militarising' Southern Ontario.
:-D
You come to Christiania and show me how tough you are. And don't worry, I can assure you the police wont come.
Old wankers..
seekingalpha.com/article/957151-argentina-s-stunning-pari-passu-loss
As far as Argentina is concerned, it might just have to pay the holdouts. No one knows how much money that might entail spending: the figures range from $1.3 billion at the low end (large, but manageable) to $12 billion at the high end. That would cause real economic damage. Again, Werning is good on this. And whether or not Argentina pays the holdouts, the risk of a credit event in the CDS market are seriously high right now: there's a hundred ways that things could go wrong and the CDS could get triggered. In fact, this being Argentina, it's entirely possible that the government could deliberately trigger the CDS, after various important people had loaded up on protection.
Oslo in autumn?
Fits in quite well with “I invest in happiness” but not with “You come to Christiania and show me how tough you are”
Tye abscence of police fits perfectly...
Have you ever been to South American Guzz?
I doubt it.
Note your comment has not one iota to do with my commentary. You are a crony capitalist, an apologist for financial crime (as long as the banks or corporations do it), like all the rest of the Muppets here.
Just curious...
I think she will default. She really can't spare the U$ anyway....
You are all wet woolgathering if you believe some sort of default declaration (which itself is just unrestrainted fancy by many of you here), will trigger a 2001 situation. You are talking back then about an economy that was the world's largest bond market in the emerging world, and an economy that was fully integrated to the world financial system, and ran on credit.
Today, the debt load is 1/3 of what it was, the bond market a fraction, Argentina has succesfully extricated itself from the criminal world financial system, and levels of borrowing are far lower.
In the meantime, muppets will be muppets. As long as the crimes are carried out by corporations and bankers, it is all copacetic. Only individuals, families, and nations should be punished for breaking the law; corporations and banks should be bailed out when they criminalize, and then allow to commit crime again.
That's the motto of the Mercorpress crony capitalist coven.
It is impossible for Argentina to disengage from the world and not end up like North Korea or Zimbabwe. My guess is your path is Zimbabwe because they don't have a military hierarchy like N Korea.
The economy has tumbled to #3 in SA quickly on its way to 4th. Getting thrown out of IMF IDB WD G20 should insure that next year.
When Argentina is envious of Bolivia's financial stability you know the end is near.
Then again, youa are a foreigner, so I probably will not.
No one is buying our products because all of you are broke. And still the economy is not crashed. All your predictions were wrong so far.
I guess you Europeans and Americans don't understand we don't want to be part of your failed system of operations. Just respect that. In a way sometimes I think we should just pay all the supposed “debts”, and then lets see if you people would leave us alone.
Just curious, how does your brain's ethical center process your cortical ideological area's support of bankers and corporations stealing, breaking the law, asking for favors, hand-outs, and calling their clients muppets and the taxpayers “suckers”, and you still defend them as honorable people that should be held to a more lenient standard?
BTW all of my predictions have come to pass just about when I said they would. You can go back through my posts and figure that out for yourself.
I see December as a pivotal month for Argentina and 2013 the beginning of the end of the K terror.
I'll indulge you and lets say the gov falls in 2013, I'll even give you that the new gov starves the people to pay the hold-outs so that they can have some few more Seychelle's cocktail parties.
You think that will make people in Argentina more amenable to like you?
@28 Shame, alex. The idea is that you comment on the article. Still, that requires intelligence. And a shave, a haircut and a wash!
@29 Of course you don't understand. You're thick! In addition, you're, I suppose, South American. That's double thick. You reckon that international laws aren't applicable to you. Triple thick. You habitually cheat, lie and steal. Quadruple thick. Shall I go on? Belligerent, underhanded, invasive, cowardly, beaten? Quintuple thick? Would you like to know the next stage? It's DEAD! Get it?
@30 Come now, alex. You are “speaking” from one of the prides of the BRITISH Empire, an erstwhile BRITISH Dominion, a proud member of the BRITISH Commonwealth and, now, an equally proud member of the Commonwealth of Nations. How can you live with yourself? Even better, why don't you stop? Even better, show your mettle by swimming from Toronto to Rochester in New York State. It's only about 30 miles! Or are you a gutless faggot?
@33 And you sound ugly. But, in the morning, I'll be sober!
@36 GUTLESS, QUEER, HOMOSEXUAL FAGGOT AND PAEDOPHILE.
@40 Forgot to mention; COWARD. Like most argie scum.
@44 Christiania? Isn't the gender bender cock-sucking slag called “Cristina”? Wouldn't that be Cristinaia? And why would anyone go there? Apart from the pleasure of practising with an assault rifle? Grenades? RPGs? Tanks? Bombers? Artillery? Naval artillery? Surely the place to be is Denmark? Where we can test whether YOU can “walk on water”. Whilst trying to evade the assault rifles, the grenades and, just to make it interesting, the mines.
@52 Youngest what? Grooming, are you?
@54 And you are a faggot. 99% of latams are. When dealing with latams on the UK border, always had my knife ready. To remove offensive weapons.
@58 Oh ho. A cowardly, brain-dead, argie cocksucker. Doesn't have one. Should we call you “cocklost”? Although “Unidentified Faggot Object” would probably be appropriate.
That's the government. The people want nothing to do with the European/American mentality, or moral values.
This is he ultimate evidence that they have a criminal mentality which agrees with corporate crime and malfeasance. Crony capitalists to the core.
@66 Cristiania, after talking with my friends in Copenhagen, has never been a needle park - cannabis has always been there but they have never condoned hard drugs, it was always the hard core dealers in Copenhagen that have pushed the hard drugs. (Personally I feel that even cannabis is bad)
Making stuff up about another is not a very impressive retort. None of you have ever come out against the corporations, not once, or the banks. You are crony capitalists who believe in redistribution from the lower classs to the upper classes by government fiat, and by having two legal systems, one for the poor one for the wealthy. Simple as that, and none of you have disputed what I aver.
@69
No, ask any argentine, they find you Euros and Americans contemptible people in your moral system.
making stuff up - please explain what you mean.
Why ia it that only countries that defaulted, well, not all, think the system is criminal?
Shut Up!
lol
“@72 Captain Pup aka Conqueror
Shut Up!
lol”
Sussie , again you lower the calibre of La Campora posts on here
“hey, try to meet me in the USA if you are a real USA citizen.
Everyone else on here is having a proper intellectual exchange, right or wrong.
You, however, just make idle threats and taunts like a schoolyard bully, right?
Do you really want us to find you, you meant what you said, right?
Tell you what, if you really live in the USA, make it easy for us.
You still insist you live in Tempe, correct?
You can show us you do:
Go to a recognisable landmark in Tempe, Tempe City Hall, you can't miss it.
Take a picture of yourself (face obscured if you like) holding this week's East Valley Tribune.
Open a PhotoBucket account under a fake name (Sussie??) and post the picture.
Give us the link on Mercopress, then we'll know you are really in the USA.
If you choose not to do this, we can assume you having lying all this time. Not unexpected, I grant you.
Can't wait for the excuses...
How's your “Papi”??
Let's hope It might change the website design and some commentators.
Isolde, don't worry about her....I am the best!
HAHAHAHAHAHAHAHAHAHAHAHA!!!
REPENT NORTHAMERICANS, REPENT.
BK - nearly a week after the last post, you write this lame drivel...
“ Cristina's dignity and resistance will set a brilliant counter precedent... ”
Laughable except that her defiant thievery will ruin the Argentine economy and cause misery for its citizens.
You are so besotted with CFK - does she give you geriatrics blow jobs, or does she have Timerman do it for her ???
#83 Yes
“#82 People have said my attitude to Cristina makes me a teenager, now you say it makes me geriatric - get your story right!”
I have never said that I thought you were a teenager.
Get my story straight? Unlike La Campora, there is no common troll script written for the independent posters to follow.
CFK is a “populist” leader with a personality cult of followers.
Their fanatical adoration of her, bolstered and guided by La Campora, are tools to support her.
I imagine you, personally, to be a geriatric porn surfer who has found a way to act on behalf of one of his fantasy women obsessions.
or a dictionary definition:
An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.
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