Hedge fund calls on Judge Griesa to reject 'stay' order requested by Argentina

Tuesday, June 24th 2014 - 22:37 UTC

Full article 9 comments

“If Argentina is really serious about its intention to negotiate...there is no reason why negotiations cannot finish before July 30” said NML Capital

Hedge fund NML Capital have dismissed the Argentine government's request to reestablish a stay on payments to the holdout hedge funds, and called on New York judge Thomas Griesa to reject the plea.

The last word, however, will be had by Griesa, who will rule on the petition tabled by Argentina.

“If Argentina is really serious about its intention to negotiate a way out there is no reason why negotiations cannot finish before July 30,” Elliott Management lawyers asserted in a statement, rejecting the need for a new injunction.

The holdout investors, who won a landmark battle with the Argentine government in the US Supreme Court last week, believe that the nation has a “grace period” of 30 days after the June 30 deadline for honoring payments to bondholders who restructured debt.

The attorneys however, did not rule out the possibility of extending the period if the parties make progress in negotiations.

“If July 30 comes around and decent progress has been made but more time is needed, and if Argentina does not take measures to dodge its responsibilities... then there would be enough motive to continue working on a mutually-agreed deal,” the letter affirmed.

If Griesa re-enforces the stay, the Argentine government will be able to pay 900 million dollars to creditors who participated in the debt swaps of 2005 and 2010, without risking an embargo on the funds by the New York justice system in line with initial rulings in the case.

Categories: Economy, Politics, Argentina, International.

Tags: Argentina, Elliot Management fund, hedge funds, NML Capital Limited, Thomas Griesa.

Top Comments

Disclaimer & comment rules

yankeeboy
I wonder if the attorneys will be working over the weekend. I would say not the weather is gorgeous here right now.
That means there are only 3 days left to negotiate.
I wonder if they will ever start.
I hear they're waiting on the ”stay' decision BEFORE they start.
Bad move
It shows you aren't serious
and
are deadbeat scofflaw
but everyone knew that already
Jun 24th, 2014 - 10:47 pm 0
Z-ville
It does say that the Fund attorney would consider allowing the stay if “decent progress has been made by July 30”. That would leave more time for negotiating.

But how do you define “decent progress” when you are negotiating with a deadbeat lender who has publicly announced that they have no intentions of paying you?
Jun 25th, 2014 - 01:17 am 0
Be serious
Argieland should pay its debts. Well done to the Judge for standing firm.
Jun 25th, 2014 - 03:04 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!