Hedge funds insist in New York court Argentina must pay defaulted bonds
Hedge fund investors who refused to join two sovereign debt restructurings by Argentina urged a US court in New York to force the country to pay them.
These so called “vulture funds,” which hold Argentine sovereign bonds that have been in default for a decade, are demanding that the country finally pay the 1.33 billion dollars that a federal judge said they are owed.
The demand came one month ahead of a Feb. 27 showdown before the 2nd US Circuit Court of Appeals in New York.
Argentina is seeking to have the appeals court overturn a finding in favour of the “holdout” creditors, which are led by NML Capital Ltd, part of a firm run by billionaire hedge fund manager Paul Singer, and the Aurelius Capital Management funds.
But in written arguments submitted to the court, Aurelius said Argentina must stop going “far beyond the reach of accountability” by letting holdouts go unpaid for more than a decade even as it pays holders of restructured bonds.
“It is hardly an injustice to have legal rulings which, at long last, mean that Argentina must pay the debts which it owes,” Aurelius said, quoting an earlier decision in the case.
The case stems from Argentina's 100 billion dollar debt default in 2002, and has been pursued in US courts because they have jurisdiction under Argentina's bond contracts with investors
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Think on Nick Leeson - Barings Bank
Juan Pablo Davila - CODELCO
Procter & Gamble
Orange County etc
Some estimate the value of derivatives traded at US$ 700 trillion if that amount has any meaning
It's not about the millionaires like Paul Singer, it's about the other holdouts, the Italian people who invested their pension money. It's about the little people.
For once in your existance Argentina, show the world you have some honour, and pay what you so readily borrowed.
If not, then Argentina will remain an international pariah, and will rapidly be destroyed by your own incompetence and corruption.
But, of course, it won't be Argentina's fault, will it? It's always someone else's fault, because none of you have the courage to hold up your hands an say, “Yup we fecked up, and now we need to do something positive to pay off our debts, and revive Argentina's almost extinct reputation on the international stage.”
Of course, pigs will fly before CFK and her ilk ever admit that they are wrong.
Argentina claims it is so successful, so why not pay its debts. CFK can afford to use her countries money to charter a private jet, rather than use the state airline, or even her private state jet (tango 1).
The problem is corruption. In order to pay these funds, she will have to admit she is in the wrong and has lied at so many levels and what Argentinas real financial position is, which will be political suicicde, this is also the reason she keeps the falklands argument, as it deflects from the real issues
I can't see this being taken up by SCOTUS either so hopefully this will be their final performance.
The law should be consistent between legal entities, people or nations. They should all get beaten with the same sh!tty stick.
next please?
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