MercoPress, en Español

Montevideo, May 29th 2023 - 05:43 UTC



Holdout hedge funds admit they prefer to negotiate with whoever succeeds Cristina Fernandez

Wednesday, April 30th 2014 - 03:49 UTC
Full article 33 comments
Paul Singer also described the team of Finance minister Kicillof as “inexperienced”    Paul Singer also described the team of Finance minister Kicillof as “inexperienced”

Elliot Management Hedge Fund claimed on Tuesday that President Cristina Fernández administration refuses to negotiate a solution over Argentine debt in default, stating that they would prefer to seek a solution with the head of state's successor in 2015.

 The organization, fronted by Paul Singer, suggested presidential pre-candidates such as Daniel Scioli, Sergio Massa, or Mauricio Macri would be more open to negotiations than the government led by Cristina Fernández.

According to statements published earlier by Bloomberg news agency, the so called ‘vulture fund’ expressed that ”Radio silence is the best description for the current regime’s response to our frequent requests to negotiate a resolution,” and defined Argentine Finance minister Axel Kicillof economical team as “inexperienced”.

Argentina has refused to pay holdout bondholders, who maintain one of many lawsuits filed after Argentina's historic 2002 sovereign debt default, the full face value of the bonds.

The Argentine government has offered Paul Singer and other holdouts similar conditions to those accepted in 2005 and 2010 by 93% of defaulted and now restructured bondholders.

The litigation which started in a New York federal court has reached the US Supreme Court and has divided opinions since Argentina should pay its debts, (and has a historic negative record on the issue), but on the other hand letting down those who restructured could hamper future negotiations with sovereign debt.

Top Comments

Disclaimer & comment rules
  • british bomber

    But these Wall St bankers refused to negotiate. That's why they are called 'hold outs'. That's why they plan to make a killing by robbing Main St.

    Apr 30th, 2014 - 06:38 am 0
  • LEPRecon

    They didn't refuse to negotiate, they refused the pathetic 'offer' that the Argentine government dictated that they should accept.

    It is Argentina that refuses to negotiate. It's Argentina that is refusing to honour its debts.

    I'm sure that if Argentina actually tried to negotiate in good faith that these 'holdouts' would accept a reasonable compromise. But Argentina refuses to compromise and insists that they accept less than a 10th of the original debt as payment.

    If I loaned someone £1,000 in good faith and they only offered to repay me £90 back, I wouldn't think that was reasonable and I wouldn't accept it either. Especially when I could see the person who owed me money squandering it on all sorts of unnecessary items.

    Apr 30th, 2014 - 08:53 am 0
  • Klingon

    @2 How much did Singer actually pay for the bonds when he bought them off the original debtor? A mere pittance I am sure, but he is finding it harder than they envisioned to collect their full worth + interest so they can make a massive profit at the cost of a country with 40 million people defaulting.
    Kristina and Singer should get married, they deserve each other.

    Apr 30th, 2014 - 11:00 am 0
Read all comments

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