Saturday, February 20th 2016 - 06:41 UTC

Griesa prepared to drop injunction if Argentine congress repeals 'lock law'

The judge presiding over a long-running battle between Argentina and a group of New York hedge funds said on Friday that he would lift an injunction that had locked Argentina out of international markets, if certain conditions are met.

Judge Griesa said he would drop the injunctions after Argentina repeals domestic laws ('lock laws') that prevent the country from making payments to holdouts

Macri’s administration has moved to settle with several holdouts, striking a $1.35 billion settlement with a group of Italian investors, among several other deals.

Ex president Cristina Fernandez and her administration called the hedge funds “vultures” and “financial terrorists,” and went as far as denigrating Judge Griesa.

The holdout investors include a group of hedge funds led by NML Capital, a unit of the billionaire Paul E. Singer’s Elliott Management.

 The ruling represents a sharp turnaround by Judge Thomas Griesa of the United States District Court in Manhattan, who had previously prevented Argentina from raising new money or paying its creditors before paying investors holding its defaulted debt.

The holdout investors include a group of hedge funds led by NML Capital, a unit of the billionaire Paul E. Singer’s Elliott Management. They have battled with Argentina for more than a decade in a fight that stems from 2001, when the country defaulted on nearly $100 billion of debt.

Argentina later offered twice to restructure the bonds for new and cheaper ones, but the holdouts refused and won a series of victories in the United States courts in recent years. Friday’s ruling now weakens the hand of the holdouts in negotiating with Argentina.

In his ruling on Friday, Judge Griesa said he would drop the injunctions after Argentina repeals domestic laws ('lock laws') that prevent the country from making payments to the holdouts and makes full payments to bondholders who settle with Argentina by Feb. 29.

The creditors and Argentina’s previous president, Cristina Fernández reached an impasse after years of mudslinging and rulings that led the country to default on its debt again in 2014. The ex president and her administration called the hedge funds “vultures” and “financial terrorists,” and went as far as denigrating Judge Griesa.

All those years, Argentina “never seriously pursued negotiations toward settlement,” Judge Griesa wrote in his ruling on Friday. “The injunctions, once appropriate to address the Republic's recalcitrance, can no longer be justified,” U.S. District Judge Thomas Griesa wrote Friday in his ruling.

“All that has changed,” the judge added, referring to the newly elected president, Mauricio Macri, who has pledged to resolve the debt dispute as part of a bigger plan to overhaul Argentina’s economy.

In recent weeks Macri’s administration has moved to settle with several other holdouts, striking a $1.35 billion settlement with a group of Italian investors, among several other deals. On Feb. 5, after a week of intense negotiations with the group of six holdout hedge funds, it offered to pay $6.5 billion in an effort to put the battle behind it.

Two hedge funds — Montreux Partners and Dart Management — accepted the proposal, which would amount to three-quarters of a $9 billion claim on defaulted bonds.

The four others funds, which include NML Capital and Aurelius Capital Management, a hedge fund run by the former Elliott trader Mark Brodsky, have continued to reject the proposal.

If the court were to refuse to vacate the injunctions now, “it would unfairly deny those plaintiffs the opportunities to resolve their disputes amicably with the Republic,” Judge Griesa wrote on Friday.

He added that “vacating the injunctions serves the public interest by encouraging settlement to resolve disputes generally — particularly such protracted ones — as well as the concern for finality in this particular litigation.”

15 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 Moderator (#) Feb 20th, 2016 - 11:38 am Report abuse
End of the line for Singer ???? Let's hope so.
2 Skip (#) Feb 20th, 2016 - 01:01 pm Report abuse
The right move.

Now we'll see how long it takes to finish this whole sorry mess.

But closer than when CFK was screeching incessantly about it.
3 Captain Poppy (#) Feb 20th, 2016 - 01:56 pm Report abuse
Wheres Singer's trolls now? Some have a hard time understanding Macri is not Kirchner........even Stiuso returned from hiding.
4 Moderator (#) Feb 20th, 2016 - 05:00 pm Report abuse
Here's what Bloomberg reports :

www.bloomberg.com/news/articles/2016-02-19/argentina-bonds-judge-says-he-will-lift-injunctions-on-debt-iku9ykz3
5 T_Paine (#) Feb 20th, 2016 - 05:16 pm Report abuse
Griesa is merely trying to move this along.

Its not near over yet.
6 HughJuanCoeurs (#) Feb 20th, 2016 - 07:34 pm Report abuse
I went to my bank manager the other day and told him that I won't pay back the money I borrowed from the bank unless it was a smaller amount and at a preferential rate. Can anyone guess what his answer was?
7 Captain Poppy (#) Feb 20th, 2016 - 07:58 pm Report abuse
Maybe you shouldn't borrow yhen, either way, who cares? But seeing that you did and probably invested in Argentina........I have a friend selling some Greek bonds at a steep discount.....interested?

Bahahahahaha.
8 Klingon (#) Feb 20th, 2016 - 10:27 pm Report abuse
Where's all Singer's ball lickers now??
Like I said Gresia wants this behind him before he dies.
This highlights what a greedy unscrupulous POS Singer is.
He is making his money back many times over and is still a prick right to the end.
Hopefully Singer goes tits up before he gets paid.
I read the full ruling and Gresia shows Macri in high regard and slams Kristina.
He also made some shots at the hold outs for being so stubborn.
9 golfcronie (#) Feb 21st, 2016 - 11:34 am Report abuse
@8
You know who is going to win don't you? Singer. He can wait and get paid what HE considers acceptable. Argentina can't wait too long as they are still in default and who would lend them the money they want? We are not talking paltry sums, Argentina needs US$ billions.
10 T_Paine (#) Feb 21st, 2016 - 12:44 pm Report abuse
8. It is sad the greaseball Argentines still think they deserve not to honor contracts.

It is no wonder they've had 75 years of negative growth.
11 ChrisR (#) Feb 22nd, 2016 - 12:31 pm Report abuse
Balls in Macri's court now!

He had better not drop it.
12 Captain Poppy (#) Feb 22nd, 2016 - 02:18 pm Report abuse
Anyone with an objective POV has to admit that Macri is doing one hell of of job trying to reverse the shitstorm that Kirchnerites and Peronists created. He can change a lot of laws and move forward. The real challenge will be the mindset of 1/2 the lazy assed population. If can can ever clean up and raze 31, that will have the biggest impact of drugs and organized crime. But, I don't see that happening any time soon.
13 ChrisR (#) Feb 22nd, 2016 - 05:29 pm Report abuse
@ 12 Captain Poppy

A fuel / air bomb would do it with predictable blast radius and no nuclear fallout.

Shit removal with the push of a button!
14 Captain Poppy (#) Feb 22nd, 2016 - 07:29 pm Report abuse
Thermobarics......or a daisy cutter will work. But in all seriousness, area 31 a more than an eyesore. Every time I fly internally when I am there you pass it going to Newbery airport. It's not only a shithole, it's a drug haven and major crime zone. To see the electrical wires strewn all over the roads and walks from stealing and tapping into to grid, it's a disaster waiting to happen. I don't think Macri will touch that in his first term, if he does, he will really impress me.
15 chronic (#) Feb 23rd, 2016 - 05:39 pm Report abuse
Clueless rgs and rg sycophants are blissfully unaware of the plaintiffs pending Second Circuit appeal of any potential vacation of the pari par su order.

Macaroni is simply extending their failure.

lol.

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!

Advertisement

Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!

Advertisement