MercoPress. South Atlantic News Agency

Holdouts lash out at Argentina: “it is choosing to default next week”

Paul Singer is head of NML Capital, together with Aurelius Capital the two main holdouts litigating with Argentina

NML Capital Ltd, one of the lead holdout creditors in Argentina's sovereign bond dispute said on Thursday the Argentine government refused to negotiate through a mediator and was all but preparing to default on already restructured debt.

After meeting separately with the court-appointed mediator Daniel Pollack on Thursday, an NML spokesman said in a statement: “Today, Argentina's government made clear that it will be choosing to default next week.”

Argentina faces a July 30 deadline to either reach an agreement with holdout creditors that allows bondholders who did participate in two prior restructurings to receive their money, now blocked by court-order, or for Argentina to default.

NML said it was prepared to negotiate with the government's team and is “willing to be flexible in forging a solution. Argentina again refused to negotiate any aspect of the dispute.”

“Instead, its representatives simply stated that no solution was possible.” More negotiations are expected to take place in the coming days, Daniel Pollack, said in a separate statement where he said time for avoiding a default “is short.”

According to US Judge Thomas Griesa, Argentina has to pay holdouts as well as bondholders which entered the 2005 and 2010 debt restructurings before that date, 30 July if not, the country will default.