After a day of fury and discussions with cabinet members, advisors and experts, Argentine president Cristina Fernandez will be sending a government delegation to New York to meet Judge Thomas Griesa and the hedge funds holdouts' solicitors and begin, hopefully, a round of negotiations to reach a settlement on the bonds litigation.
Apparently Argentina is prepared to present a payment plan with bonds similar to that implemented with Spain's Repsol regarding the seizure of YPF and even the possibility of making a 300 million dollars guarantee deposit so as to comply at the end of the month with payments to restructured bonds, as has been repeatedly stated by Argentina.
This would then be followed by an out of court settlement with the hedge funds and daily reports on advances to Judge Griesa.
The first announcement of the government delegation trip and Argentina's willingness to sit and talk was formally presented to Griesa by Argentina's lawyers, Carmine Boccuzzi from Cleary Gotlieb Steen & Hamilton (CGS&H) on Wednesday. Allegedly according to what Boccuzzi reported to Argentina both Griesa and the Elliot Fund lawyers, Ted Olson and Robert Cohen, were willing to the proposal.
However not long after emerged the tone of some of the comments referred to President Cristina Fernandez and Argentina which triggered the immediate reaction of Buenos Aires cancelling the government delegation trip and attendance of next week's audience.
Judge Griesa said that President Cristina Fernandez speech following the US Supreme Court Monday decision not to consider the Argentine case, was 'unfortunate' and 'created problems' while at the same time doubting of the good faith of Argentina and arguing he was fed up of Argentina not taking seriously the US Justice system.
This was followed late in the evening by a formal statement from the Ministry of Economy under Axel Kicillof arguing that the lifting of the stay of injunction by the New York appeals court made it impossible to honor June 30 financial commitments, since it entitled the holdouts to collect their 1.3bn dollars. This would inevitably lead to a 'technical' default.
The position was confirmed Thursday morning by cabinet chief Jorge Capitanich who denied plans for an Argentine government delegation to travel to New York and attacked Judge Griesa saying that events confirmed the true purpose of the decisions: pulverize one of the most successful examples of debt restructuring and claimed that lifting the stay action opened the way for the holdout hedge funds not to negotiate.
However since hedge funds make sure all the domestic-targeted rhetoric of President Cristina Fernandez and ministers is immediately translated, put into writing and certified by a notary, Judge Griesa is well aware of the comments in Argentina, which apparently makes him even more furious plus the fact the whole case is delaying his summer holidays, according to media reports.
Summing up, most certainly an Argentine government delegation will be travelling to New York next week to try and establish some mechanism of understanding with Judge Griesa and the holdouts that can open a path to begin putting an end to the decade long litigation.