Tuesday, November 27th 2012 - 04:52 UTC

Investors holding restructured Argentine bonds also appealed Judge Griesa’s ruling

Investors holding 1 billion dollars worth of restructured Argentine debt said they also appealed to US District Judge Thomas Griesa’s ruling that they fear would trigger another default and prevent them from being paid principal and interest due on their bonds next month.

Sean O’Shea, a lawyer representing Gramercy, a group that agreed Argentina’s debt swap

Lower Manhattan Judge Griesa ordered late on Wednesday that Argentina immediately pay a separate group of holdout investors, who rejected two debt restructuring offers made in 2005 and 2010, the 1.33 billion in judgments they have won in court, a stinging blow to Argentina’s efforts to overcome a 2002 debt crisis.

“Given Judge Griesa’s obvious frustration with the Republic of Argentina, we expected this ruling. What we did not expect was the disregard of innocent Exchange Bond Holders’ due process rights,” said Sean O’Shea, a lawyer representing Gramercy, a group comprised by hedge fund investors that represent 93% of the total bondholders that agreed to Argentina’s two debt swaps offered.

“We prepared an immediate appeal and motion to stay this ruling so that we may be heard in the 2nd Circuit Court of Appeals, and we hope the court to consider the ruling a mistake and suspend it”, O’Shea said to reporters.

The holdout investors that Griesa ruled in favour are led by NML Capital, an affiliate of Elliott Management, and Aurelius Capital Management, both based in New York.

Griesa’s order means Argentina must deposit the money into an escrow account by December 15, which protects both sides of the case pending a final decision by the US Second Circuit Court of Appeals.

At stake for all exchange bondholders is a potential technical default on approximately 24 billion worth of debt issued in the 2005 and 2010 exchanges. Principal and interest payments due those bondholders next month total over 3 billion.
 

38 comments Feed

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1 surfer (#) Nov 27th, 2012 - 05:57 am Report abuse
Look, you lent money to Argentina, what, exactly did you expect to happen, get paid back, think again!
2 Teaboy2 (#) Nov 27th, 2012 - 07:32 am Report abuse
They got nearly 50 billion USD in reserves, so they can more than afford to pay the total debt owed especially if all thats due is 24 billion!!
3 Idlehands (#) Nov 27th, 2012 - 09:11 am Report abuse
I could imagine these investors winning this case but for the fact that Griesa has ordered they pay the holdout cash into an escrow account prior to the final court decision. I think he's done that to test whether Argentina is going to choose to be a scofflaw prior to judgement.

Argentina has signed an affadavit saying it will abide by the court so one must assume they will pay it in. Will they then choose to leave themselves in a situation where they pay the holdouts and default on the rest - the worst of all worlds for them?
4 ElaineB (#) Nov 27th, 2012 - 09:31 am Report abuse
@1 Actually at the time of the original loans, yes, they did expect to be paid back. It was a different Argentina then, expected to grow and develop.
5 emerald (#) Nov 27th, 2012 - 10:40 am Report abuse
Mercopress employees don't never understand economy to comment.
6 Idlehands (#) Nov 27th, 2012 - 10:47 am Report abuse
5 emerald

I imagine their office cleaner understands it better than CFK
7 Captain Poppy (#) Nov 27th, 2012 - 11:25 am Report abuse
#2 saying you have X reserves and actually have it are two different things. Why to you think it took a month the get the naval cadets home?
8 Idlehands (#) Nov 27th, 2012 - 11:45 am Report abuse
An interesting read:

www.businessinsider.com/why-argentina-is-such-an-economic-mess-2012-11
9 ChrisR (#) Nov 27th, 2012 - 11:49 am Report abuse
The entities that agreed the original haircut were mainly banks who passed their losses on the their customers in the bad debt account. They already have been recompensed, albeit by everyone who banks with them, not the scofflaws of AG.

Now they are worried they are going to get screwed again! When you debate with the devil you get screwed.

I hope that a default does happen and AG get further marginalised by the business community and help bring this despotic government down.

They could of course always put their money where their mouth is and pay everyone what they are owed and end the matter in their favour. It would mean that the USD 46 Bn needs to exist. Anybody what to take bets on that one?
10 agent999 (#) Nov 27th, 2012 - 12:36 pm Report abuse
Another good read

“Why I’m happy for Argentina to default”

www.moneyweek.com/investments/stock-markets/emerging-markets/new-world-argentina-default-61600

“Mexico, Colombia, Peru and Chile have all combined economic growth with important reforms. Recognising what they have in common, this year they formed the Pacific Alliance – a regional bloc dedicated to boosting trade between members and with the rest of the world.”
11 Captain Poppy (#) Nov 27th, 2012 - 01:16 pm Report abuse
#9 Chris they become more and more marginalized each and every day, forcing them to rely on domestic econonics. And from all the articles they are not bearing any fruit as well.......more rail strikes, teachers strikes and now hospitals on strike, trash collection issues. Now neighboring Paraguay finding oil. Maybe it's time for a bit of reflection in the peronist party because something tells me they are not partying over they state capitalism policies.
12 ptolemy (#) Nov 27th, 2012 - 01:16 pm Report abuse
I suspect that if the rulings go against Argentina and there is a technical default, CFK will just keep all the money. It would be the only way she could save face and make political hay of it all.
13 Acchiappaladri (#) Nov 27th, 2012 - 01:43 pm Report abuse
Mr. Sean O’Shea, that bombasting, noisy lawyer representing Gramercy (I cannot prove it but I have been suspectin for years that high ranking Ladroprogresistas have their personal interest in that fund ... IF there were a “vulture” in the Argentine default story that is the ONE), has already got Judge Griesa's reply LOL

www.urgente24.com/207807-griesa-rechazo-pedido-de-bonistas-plan-b-y-reapertura-del-canje?pagination=show

(This) game OVER !

More about Gramercy's role on the next occasion ;-)
14 Idlehands (#) Nov 27th, 2012 - 02:24 pm Report abuse
The trouble is it's never quite game over. You can clutch a clove of garlic and stab the corpse of Argentina with a silver dagger and it will still come bouncing back like the Black Knight.

Some sort of cage is in order.
15 Acchiappaladri (#) Nov 27th, 2012 - 02:40 pm Report abuse
@14 Idlehands

Wow! I was wrong ... for long years I've been thinking of is as a political-criminal affair, more than just high risk finance ... now I know: SORCERY first of all LOL

Incidentally, for anybody who missed them, here are Judge Griesa's replies:

“ The motion listed as document number 401 for case 08-CV-6978 -Motion to Vacate -is denied. ”

“ The motion listed as document number 402 for case 08-CV -6978 -Motion to Appear as Interested Non-Parties -is denied. ”

And now let's move the fun (hopefully ... touching wood!) back to the 2nd Circuit Court of Appeals.
16 LightThink (#) Nov 27th, 2012 - 03:15 pm Report abuse
[ 4

Malaysian Prime Minister Najib Abdul Razzak and his onetime close friend
Abdul Razzak Baginda are the “ priority witnessess” in an investigation into bribes and kickbacks amounting to about € 150 millions in the sale of Scorpene submarines to the Malaysian Ministry of Defense that the French Authorities probing the scandal ......................

What is your opinion on this case ?
17 Conqueror (#) Nov 27th, 2012 - 03:23 pm Report abuse
Yup, Gramercyh et al appealed and got told to get lost. Don't we all just LOVE watching argieland sinking into the morass? Let's see a move asap to seize EVERY argie asset. Don't forget to check Swiss bank accounts. All those with argie debts can be paid and everyone else can have a holiday at CFK's expense!
18 Idlehands (#) Nov 27th, 2012 - 03:24 pm Report abuse
16 LightThink

Uhh ??? Nothing like staying on topic.

Some details here:

wikibin.org/articles/scandals-of-najib-tun-razak.html

He's a crook by the look of it.
19 Conqueror (#) Nov 27th, 2012 - 03:26 pm Report abuse
@16 Don't care. It's not a problem in the South Atlantic.
20 LightThink (#) Nov 27th, 2012 - 03:43 pm Report abuse
That was a special question to the comment 4 owner .
21 simonzhivago (#) Nov 27th, 2012 - 04:15 pm
Comment removed by the editor.
22 agent999 (#) Nov 27th, 2012 - 04:18 pm Report abuse
@21
goodbye sussie - we have your details
23 Think (#) Nov 27th, 2012 - 05:25 pm Report abuse
(13) Nonacchiapperestenemennounaliradanoi ;-)

And what about Sr. Tullio Zembo.........?
Is he also a “bombastic, noisy Ladroprogresista with a personal interest?”

www.pagina12.com.ar/diario/elpais/1-208624-2012-11-26.html
24 Captain Poppy (#) Nov 27th, 2012 - 06:04 pm Report abuse
agent999....think sussie will ever get it that her nonsense is not being tolerated? lol
25 Acchiappaladri (#) Nov 27th, 2012 - 06:43 pm Report abuse
@24 Think

Thank you for your good wishes (that unfortunately cannot be understood by the majority of forumers here, who don't master the Italian language like you ... you write almost as a native Italian speaker, I sincerely congratulate you).

What is promising lately it is the noiser and noiser Ladroprogresista propaganda, meaning that louder and louder, deeper and deeper cracks in their populistic and corrupt regime have to be blurred.
For example it is quite amusing to read today:

Moyano denuncia a Anibal Fernandez “para cerrarle esa boca de letrina” LOL

And about Mr. Tullio Zembo, occasionally (for me the last time before today's was about two and a half years ago, on occasion of the second bond exchange offer) we read something weird by him on Argentine media in Spanish or Italian.
We understood that he is an Argentine lawyer of Italian descent (living and doing business in Argentina since 1986: quite possibly he has Italian citizenship too). In the past he was looking for clients (as a lobbyist and/or lawyer) among Italian Tangobond holders. He got very few if any.

What Mr. Zembo has told today to Pagina 12 interviewer it is just his own opinion, or possibly he has been paid a fee for saying that: he his a professional lobbyist.
He DOES NOT represent any group or association of Italian holdouts and I doubt that he represents Italian holders of exchange bonds as well.
Before you mentioned that Pagina 12 article, we had already detected another shameful piece of Ladroprogresista propaganda in www.infonews.com mentioning this Mr. Zembo, allegedly “representing 450,000 Italian bondholders who accepted the debt haircut” LOL LOL
Insanity or just a stupid lie ... you choose please.
1) he dos not represent any Italian bondholder,
2) (in excess of) 450,000 was the number of Italians who made the mistake to invest in Argentine bonds: probably about 2/3 of them were sadly tendered in the two big exchanges (the 3rd one was just a Xmas gift for Boudou's friends).
26 Captain Poppy (#) Nov 27th, 2012 - 08:22 pm Report abuse
Feel the love !!
27 ProRG_American (#) Nov 27th, 2012 - 09:05 pm
Comment removed by the editor.
28 Captain Poppy (#) Nov 27th, 2012 - 09:18 pm Report abuse
What's next......my winning powerball ticket before any of that happening
29 toooldtodieyoung (#) Nov 27th, 2012 - 09:25 pm Report abuse
14 Idlehands

LOL

“I am the Black Knight, none shall pass”
30 Xect (#) Nov 27th, 2012 - 09:27 pm Report abuse
Here we are the copy & paste king is back in town!

Ignore ProRG, he's pasting this rubbish in lots of threads.
31 British_Kirchnerist (#) Nov 27th, 2012 - 09:46 pm Report abuse
Intersting case where the vast majority of the creditors are on the side of the debtor =)

#4 You mean back in Menem's day? The good old days for you!
32 Captain Poppy (#) Nov 28th, 2012 - 12:46 am Report abuse
No BK....you still fail miserably in finance. They do not want to lose money.....it's different from siding with the idiots.
33 hans (#) Nov 28th, 2012 - 01:46 am
Comment removed by the editor.
34 rob the argie (#) Nov 28th, 2012 - 02:10 am
Comment removed by the editor.
35 Teaboy2 (#) Nov 28th, 2012 - 05:19 am Report abuse
@34 no rob the argie, its sad to see pathetic loser's making up false accusations just to try and save themselves from their own countries embarassment. Your post has been reported as trolling, goodbye!
36 Captain Poppy (#) Nov 28th, 2012 - 01:24 pm Report abuse
What a conundrum for argentina....on one side they are on their knees, the other side they are on all fours........lol. A self inflicted wound. How many times has argentina shot itself in both feet?
37 GeoffWard2 (#) Nov 28th, 2012 - 05:26 pm Report abuse
Having checked the extended definitions of 'Vulture Fund', 'Vulture Investor' and 'Hedge Fund'
I think that all those that accepted the 'restructuring' (reduction) of their repayments on their loans are no different to those that have held out for full reimbursment.

It would seem that *everybody* lending money to Argentina is a vulture in the eyes of the president.

I wonder if she has words to describe those stealing money from Argentina.
She might start with the phrase “I am a ....”
38 Captain Poppy (#) Nov 28th, 2012 - 06:16 pm Report abuse
They are only vultures becasue they had the audacity to say “NO” to argentina. Can you imgaine the balls of a country that is in collapse and thinking they are doping a favor and calling the choots when it came to restructuring. financial deadbeats that lack honor, respect and self diginity........but not short on ego!

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