Thursday, November 29th 2012 - 00:31 UTC

Argentina saved from a ‘technical default’; court case continues February 27

A US appeals court on Wednesday granted an emergency stay order that gives Argentina more time to argue against making a 1.33 billion dollars payment to investors who rejected two debt restructurings in the nation's 2002 sovereign debt default.

Minister Lorenzino had anticipated Argentina was prepared to reopen the defaulted-bond payment

The federal appeals court postponed Judge Thomas Griesa's ruling “pending further order” and set February 27th as the day in which Argentina will be able to present its case against the judge's orders.

The measure lets the Argentine government face a bond payment of 3.3 billion dollars without any risk to holders of its restructured debt.

The appeals court has put off any decision until well into 2013 on whether or not Argentina will have to pay so-called holdout investors who did not participate in the 2005 and 2010 debt restructurings which paid less than 30 cents on the dollar.

Both Argentina and bondholders who took part in the exchange filed appeals to the 2nd Circuit. Oral arguments before the court will occur on Feb. 27.

Wednesday's decision by the 2nd Circuit effectively halts the order by US District Court Judge Thomas Griesa in Manhattan that could have led to a technical default on approximately 24 billion dollars worth of debt issued in the 2005 and 2010 exchanges.

Lead holdout investors Elliott Management Corp and Aurelius Capital Management both declined to comment on the 2nd Circuit's decision.

On Wednesday, the Argentine Government had stated that it would wait for the US court's decision to evaluate Griesa's ruling.

Earlier, Economy Minister Hernán Lorenzino, assured that the decision to reopen the defaulted-bond payment or not is tied to the federal appeals court decision on the case filed by the hedge funds against the country.

“We're waiting for the appeals court decision. We have nothing to add to the case until they reach a decision on the matter,” he added in a press conference.

Lorenzino also said that the Argentine government was willing to reopen the bonds swap agreed on 2010, and invited the holdouts to participate. The decision was to try and avoid a default but was conditioned to the acceptance by the Argentine Congress to lift the so called ‘lock-bill’ which prevents any further negotiations with holdouts.

“A proposal for the bondholders who did not participate in the restructuring, under the 2010 swap conditions, would be in line with the country’s record and could be debated in Congress” said Lorenzino.

Events indicate that by February 27 Argentina most probably will finally re-open the swap option on 2010 terms. Argentina on that year managed to restructure 93% of its defaulted sovereign bonds.
 

58 comments Feed

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1 British_Kirchnerist (#) Nov 29th, 2012 - 12:55 am Report abuse
The turn of the tide is beginning =) Viva ristina!
2 Pirat-Hunter (#) Nov 29th, 2012 - 12:55 am Report abuse
I think Argentina should teach this pirates and vultures a lesson and keep crooks from ever trying anything of this sort again.
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
3 ProRG_American (#) Nov 29th, 2012 - 01:14 am Report abuse
1 British_Kirchnerist (#), 2 Pirat-Hunter (#), 3 ProRG_American ....where are the rest of the forum participants? If things had gone the other way, this string would be 200+ comments long by now. Oh I know, it's sleepy time in London. What a wake up call it will be.
Things seem to be going your way Malvinenses.
4 so_far (#) Nov 29th, 2012 - 01:23 am Report abuse
Next news soon...“Fragata Libertad” back home without pay a single penny to vultures. just wait.

well done Argentina
5 ptolemy (#) Nov 29th, 2012 - 01:34 am Report abuse
Razor's edge, huh?
6 andy65 (#) Nov 29th, 2012 - 01:41 am Report abuse
it's just a delay don't get to comfortable-never known such a disliked country who just can not see the error of its ways-Creditors ,IMF , WTO the list goes on.
You need to get rid of the botox queen before any remaing hope is lost

ARGENTINA ALWAYS THE VICTIM.
7 Captain Poppy (#) Nov 29th, 2012 - 01:47 am Report abuse
So I guess the America judiciary that was irrational, corrupt and in Singer's pocket, is now a reasonable system of rules and laws because they “temporarily” stayed a lower court's remedy.
8 ptolemy (#) Nov 29th, 2012 - 01:48 am Report abuse
Wonder why three months? That's seems a lengthy amount of time.
9 windy (#) Nov 29th, 2012 - 02:04 am Report abuse
Vamos Argentina The vulchers will just have to go hungry and their cheerleaders from the islands will just have to go back to inbreeding.
10 Pirate Love (#) Nov 29th, 2012 - 02:25 am Report abuse
@1-@4 whats with all the excitement? did you pay your debts on time?
oh wait your default has been put off til feb 2013, still cannot escape it eh?
i guess when your on death row a few more months would be most welcome.
enjoy the “stay” of execution over the christmas period, i suppose it wouldnt be the christian thing to put argentina out into the streets over the festive holidays,and I think i can guess what argentines will be praying for from santa this year. HO HO HO! :)))
11 Ayayay (#) Nov 29th, 2012 - 02:30 am Report abuse
The gov says they're a rich country, (F1 racetracks, stealing Rock In Rio away from Rio). If Oprah has $1B banked in a hidden jacuzzi then they could have covered 1 micropayment to treasuries holders, right?
12 so_far (#) Nov 29th, 2012 - 02:36 am Report abuse
# 10 .......UK will need Harry Potter magic for scape of this.....

www.debtbombshell.com/

HO HO HO HO

:))))
13 Troy Tempest (#) Nov 29th, 2012 - 03:24 am Report abuse
@04 so far

“Next news soon...“Fragata Libertad” back home without pay a single penny to vultures. just wait.”

To paraphrase SpinalTap, “ it's a fine line between genius and stupid”

:-D
14 Marcos Alejandro (#) Nov 29th, 2012 - 05:33 am Report abuse
In the last few hours
Argentina 2 Pirates 0

www.youtube.com/watch?v=RKWMfK1XcFk
15 Teaboy2 (#) Nov 29th, 2012 - 07:11 am Report abuse
LOl hey argentines, the only reason the judgement was stayed is because the the other side also appealed the judgement due to them not wanting the other investors to lose out on being paid what is owed to them in decemeber when payments are due.

You quickly forget about this - en.mercopress.com/2012/11/27/investors-holding-restructured-argentine-bonds-also-appealed-judge-griesa-s-ruling - and then go on to claim the article above is a victory for argentina.

Lol no wonder you have no fair justice in argentina, as non of you seem to know how a fair justice system works. Just because the judgement has been stayed, it doesn't mean the judgement has be annuled, it just means they have put the judgement on hold till the appeal court hears the appeals and decides whether the judgement should be allowed or apply any admendments to it. The fact is you lost the case, and the appeal court will take that same view, but will also make admendments so that the other creditors that did agree to the restructuring, do not lose out as a result of the judgement, which they would have done if the judgement had not been stayed, as argentina would have been forced to default on its payments next month. Now argentina can pay in december the creditors as per expected, and will not default. But that doesn't mean they won't default after losing the appeal!
16 Troy Tempest (#) Nov 29th, 2012 - 07:38 am Report abuse
Its Christmas holiday time. The courts know they cannot wrap this up neatly in a week or two. They will all be away, holidaying in London or New York, perhaps a nice ski resort. Or they could go somewhere south to get warm and spend their money. US Virgin Islands spring to mind, or British Virgin Islands. Puerto Rico is an Island that is a US Territory. Perhaps closer to LATAM and Venezuela than USA, but still the Islanders like their affiliation with the US and want it to stay a Territory. US Americans will be bringing oodles of cash to spend there.

After Xmas they will be refreshed and relaxed enough to pursue the case thoroughly and dispense with Argentina's spurious claims of victimisation. Maybe some nice loot will roll in.

CFK will have all Christmas to fret over this, and her people will start losing their patience.
17 surfer (#) Nov 29th, 2012 - 08:04 am Report abuse
this is great news, looks like Argentina won't default, this is definitely not just a delay, this is a complete victory over the creditors, honestly. Time for the champagne, no doubt about it, pats on the back all round, well earned.

it's completely fine to lend money to Argentina now....
18 Teaboy2 (#) Nov 29th, 2012 - 09:12 am Report abuse
@17 Lol yeah right surfer, complete victory you say, you won't be saying that when the appeal court uphold the judgement in febuary with admendments demanding all creditors be paid, both the hold outs and the ones that agreed to the restructured bonds!
19 Idlehands (#) Nov 29th, 2012 - 09:28 am Report abuse
Surprise surprise - it's been kicked down the road again.
20 willi1 (#) Nov 29th, 2012 - 09:36 am Report abuse
What now? seems the us-government wants Griesa to quit until february 13.
COWARDS! they are nothing better than the arg crooks. ok, februar 13 is not 10 years but the sign of the us-cowardice is a catastrophe. it is like with our german government and judiciary.
i bet that also the IMF will postpone again the presentation of a true arg statistic which should be done on dec. 15. This year!
21 Pirate Love (#) Nov 29th, 2012 - 12:35 pm Report abuse
by the way arg posters are chest pumping it sounds as if they have won something, dont they realize they still have to face default in 2 months time,its typical argentines cant they think that far ahead, or as i suspect what they see as a shred of good news has to be trumpeted from the rooftops as they have little else to be chirpy about, bless.
If arg posters think winning a delay on defaulting is a victory, then their aspirations are as low as their countrys investment rating and Crustinas popularity, and remain blind to the fact that they owe money and will one way or another pay up, lets face it how much has argentina lost through investment being scared away? still think it was a victory? I call it a reprieve.

yet the default looms and they still call it a victory !! however i cant see them pots and pans being put away just yet.
22 Michael May (#) Nov 29th, 2012 - 12:39 pm Report abuse
The crucial question is whether or not the CFK government will use this time to seek a solution to the problem or immediately jump on other “crises” until the deadline expires. The longer that this issue plays out the closer it will get to the next Argentine electoral campaign. It will be interesting to see if the several Justicialist (Peronist) governors who seeking the presidency will break with Cristina's position and argue that Argentina needs to mend fences and return to the world stage. Cordoba governor De la Sota is already making such rumblings.
23 surfer (#) Nov 29th, 2012 - 12:41 pm Report abuse
In the last few hours
Argentina 2 Pirates

the transformation is complete
24 JuanGabriel (#) Nov 29th, 2012 - 01:08 pm Report abuse
Argentina is probably going to default soon without the holdout issue. Defaulting because of the holdouts gives CFK an excuse, she'll need to look for another scapegoat otherwise.
25 ChrisR (#) Nov 29th, 2012 - 01:27 pm Report abuse
Just delayed the day of reckoning.

But the day will come early in the New Year.
26 Orbit (#) Nov 29th, 2012 - 01:55 pm Report abuse
@14 .... In the last few months Argentina -145 Rational People 15
27 GeoffWard2 (#) Nov 29th, 2012 - 01:57 pm Report abuse
Remember that there are many, many Argentinian 'vultures' who have accepted the '30 cents on the $' 're-structuring', and many also who are holding out for full dollar repayment (with the agreed interest).

I guess paying them back in pesos will naturally 'restructure' matters for these Argentinians, and the longer the government delays the paying, the more 'restructuring' happens - at the rate of 25% p.a., or 2% decline per month.
28 ptolemy (#) Nov 29th, 2012 - 02:25 pm Report abuse
@22
Interesting points; what will CFK do during this three month period,..no doubt make some big political hay about vulture funds,etc. Also, Cordoba governor De la Sota is definitely burning bridges with the government. I think people here in Argentina are confused about CFK. She is a marxist, as are her policies, though pretends to be peronist.
29 Optimus_Princeps (#) Nov 29th, 2012 - 02:36 pm Report abuse
They are just delaying the inevitable. What I don't understand is the term “vulture funds”.

Maybe I should criticize people I owe money to, and say that I'm morally opposed to paying them back unless I can screw them over.

@1 If I got a lobotomy and sniffed paint thinner, would I be able to share the same views as you?
30 Anbar (#) Nov 29th, 2012 - 03:21 pm Report abuse
postponed till after Xmas eh?

boring....
31 Idlehands (#) Nov 29th, 2012 - 04:16 pm Report abuse
28 ptolemy

I'm not convinced she follows any particular dogma. She seems to be a totalitarian that reacts off the cuff to events.
32 Captain Poppy (#) Nov 29th, 2012 - 04:20 pm Report abuse
#22 I agree this 3 month reprieve is definitely crucial for what action she takes. Many wanted to see the hammer drop now and reasonable so, but it is not unusual to have a stay granted during an appeal. However it is another bad decision is Argentina interprets this as a vistory. If she was smart she would just plan on paying them, or start talking to the holdouts. I don't see the appellate court setting a precedent in contract law that when a debtor cannot pay it's bill's that the creditor must take a reduction of the debt or mit is no longer valid. That is what the outcxome will be and I do not see that happening.
33 Simon68 (#) Nov 29th, 2012 - 04:24 pm Report abuse
28 ptolemy (#)
Nov 29th, 2012 - 02:25 pm

Being a marxist and a peronist are not mutually incompatible. After all we know that peronism is not an ideology, it is an operating system which quite happily accepts the ultra left and the ultra right as input.

Remember the 1970's, the ERP and Montoneros and the AAA all coexisting under the peronist umbrella!!!!

CFK is neither peronist nor marxist, she is “cristinista”, looking out for number one, and when she and her evil brood consider that they've milked Argentina for all they can, they will slip away to enjoy their ill gotten gains!!!!!!
34 Pirate Love (#) Nov 29th, 2012 - 04:50 pm Report abuse
que... IMF red card just for the mix :)))
35 Pirat-Hunter (#) Nov 29th, 2012 - 05:00 pm Report abuse
Seems all the retards work for IMF now, maybe they don't know how to read .
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
36 agent999 (#) Nov 29th, 2012 - 05:17 pm Report abuse
The biggest problem that CFK and Argentina have is that they react to everything with an emotional knee-jerk reaction based on their misconceived belief that the whole world is against them.

To them it is inconceivable that they might be wrong in any action they take.
They complain that the US, UK, the IMF, Ghana and the rest of the worlds actions and rulings are damaging Argentina without realizing they, as the leaders, are the ones who are responsible for the mess they have got themselves into.

Cristina has said - there is God then there is me.
37 ElaineB (#) Nov 29th, 2012 - 06:00 pm Report abuse
@36 Part of Peron's indoctrination of the masses was to foster a belief that the world was against Argentina. It was a way of uniting a very disparate and bickering country. The nationalism was designed to stop the different regions from fighting amongst themselves. Interestingly, the old grudges are still there simmering just below the surface. CFKC must realise this unrest acutely and is ratcheting up 'the whole world is against us' to try to keep the country united. She must have one eye on Spain where regions want to break away from central government.
38 agent999 (#) Nov 29th, 2012 - 06:12 pm Report abuse
The best result for the bondholders, the worst result for Argentina!
39 Agent909 (#) Nov 29th, 2012 - 06:14 pm Report abuse
some agents don't qualify to post in merco-press
40 agent999 (#) Nov 29th, 2012 - 06:16 pm Report abuse
@39
good night sussie
41 David Kameron de pollito (#) Nov 29th, 2012 - 06:38 pm
Comment removed by the editor.
42 agent999 (#) Nov 29th, 2012 - 06:40 pm Report abuse
@41
good night sussie
43 Captain Poppy (#) Nov 29th, 2012 - 06:40 pm Report abuse
#36 I am really impressed that she put God in front of her. However you are so correct in that nothing is a deliberate, thought out action. It is always off the cuff, spur of the moment. Her rants are all based in rage and anger and that just does not export well to countries outside her own. It obviously did not go well in Griesa's court. She is lucky she was able to close her mouth during the pleading for a stay.
44 agent999 (#) Nov 29th, 2012 - 06:49 pm Report abuse
Actually I think the inference was more of a case that she was better equipped.
45 toooldtodieyoung (#) Nov 29th, 2012 - 08:09 pm Report abuse
It doesn't matter, the hammer will still fall. The ship WILL sink, it's not a question of “If” anymore, just of “when”.

KFC / Ol' Turkey Neck / TMBOA The Harpy will open her mouth again, at the wrong time and the merry-go-around will start again.

I love that the Argentine posters think that they have won. They are too stupid to realise that this is just a stay of execution......

The gun is still loaded and the finger has still got first pressure on the trigger. It's not been pulled all the way....YET........................... Clowns.
46 so_far (#) Nov 29th, 2012 - 08:19 pm Report abuse
# 45

Relax Rambo.....everything will be all right.

:-)
47 briton (#) Nov 29th, 2012 - 08:28 pm Report abuse
In the last few hours
Argentina 2 Pirates 0

And the brit 5***
48 ptolemy (#) Nov 29th, 2012 - 08:58 pm Report abuse
@31
@33
“... historically been characterized by state ownership of productive resources in a planned economy and sweeping campaigns of economic restructuring such as nationalization of industry and land reform,..” Ring any bells? Actually, this is part of quote from the subject of communism. Some say Argentina follows the role of Venezula. If you take a walk on Entre Rios (Buenos Aires,) to the communist headquaters, take a look up at the head of the stairs. You'll see a painting of Chavez. I still think CFK is a Marxist.
49 Idlehands (#) Nov 30th, 2012 - 02:38 pm Report abuse
I dunno about a marxist - but she is a dead duck (or a sitting one at least):

www.buenosairesherald.com/article/118087/cfk-takes-on-the-wrong-judge
50 Captain Poppy (#) Nov 30th, 2012 - 03:03 pm Report abuse
I see the land reform has happened that gated communities must ceed as much 33% .....what a thievery
51 British_Kirchnerist (#) Nov 30th, 2012 - 10:14 pm Report abuse
Cristina isn't a doctrinaire Marxist, but she's definately much better politically than you'd expect from a “Peronist”, after the experince of Isobel, Menem etc and with the threat of Scioli bringing that back..,
52 andy65 (#) Dec 01st, 2012 - 01:10 am Report abuse
I loved seeing David Cameron confront Hitler Cristina at G20 and I quote
”Her lip quivered as she muttered something in Spanish as Cameron gave it to her (verbely) then walked away”.
WONDERFUL
53 Captain Poppy (#) Dec 01st, 2012 - 01:18 am Report abuse
She is a submissive when it comes right down to it.....Nestor was her boss
54 andy65 (#) Dec 01st, 2012 - 02:22 am Report abuse
Sheeds to do the world a favour and go join Nestor, sooner the better
55 Captain Poppy (#) Dec 01st, 2012 - 04:23 pm Report abuse
In the words of the great musical artist Smokey Robinson.......“I second that emotion”
56 Troy Tempest (#) Dec 02nd, 2012 - 07:18 am Report abuse
@52 Andy

Please post a link Andy - O would love to hear more on that.

LOL

Any YouTube links??
57 andy65 (#) Dec 02nd, 2012 - 01:37 pm Report abuse
This is the only link that gives an idea,what gets me The botox bird refused a letter from the Falkland Islanders in New York then complains when David Cameron does the same to her,this woman (ragime) just do not get it do they.
58 Shed-time (#) Dec 02nd, 2012 - 10:11 pm Report abuse
@57 No, she really doesn't get it. That's why she's such an accomplished lawyer.

... wait a minute.

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