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Some Euro-bond holders willing to waive the RUFO clause, says Bloomberg News

Tuesday, July 29th 2014 - 05:43 UTC
Full article 12 comments

A group of creditors holding about 28% of Argentina's Euro-denominated debt said it would be willing to waive a clause that’s hampering a deal between Argentina and holders of its defaulted bonds from 2001, according to a report by Katia Porzecansky published by Bloomberg News. Read full article

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  • RICO

    Argentina is rushing to the edge of a precipice, there are options to turn away but the government of Argentina is determined not to appear as if it is changing direction.

    Jul 29th, 2014 - 08:31 am - Link - Report abuse 0
  • Welsh Wizard

    @2 its toolate to start rushing into nulti-jurisdictional negotiations to amend the docs. Just to locate all the bonds holders so you have a quorum can take weeks.

    Jul 29th, 2014 - 08:52 am - Link - Report abuse 0
  • yankeeboy

    I think a lot of the bondholders would have given up the RUFO clause if only Argentina would have asked.
    They didn't want to ask though

    2. Griesa won't let the Trustees disclose the bondholder info to Argentina. So good luck trying to re-issue them under another jurisdiction.

    Jul 29th, 2014 - 10:23 am - Link - Report abuse 0
  • Conqueror

    As we've seen from articles published in various places, the RUFO clause doesn't have to be applied. I'll say it again, argieland wouldn't be making an offer.

    Jul 29th, 2014 - 11:52 am - Link - Report abuse 0
  • Welsh Wizard

    @3 I'm not talking about re-issuing them. As you know, if you want to restructure a syndicated loan you get the 12-15 banks around the table and talk. If you want to restructure a bond deal you have to find the bondholders first of all. This can take a lot of time and given that there are more of them, it generally takes longer to reach an agreement. Argentina didn't want to contact the bondholders, they didn't want to ask them to give up the RUFO. They want to default to try and show the people that they don't have to do what anyone else says...they have seriously misjudged this situation...

    Jul 29th, 2014 - 12:55 pm - Link - Report abuse 0
  • yankeeboy

    5. In the end the default is only speeding up the depression. That was going to happen regardless of an agreement with the holdouts.
    This may give them a few months of wiggle room to get them through winter without going completely broke. I don't see anyway for them to replenish U$ before next years crops.
    That's a long way off.
    I also can't see this being resolved in Jan 2015. Why would anyone deal with a lithium soaked psychopath when they can wait for a new Prez the following year.
    Chances are they won't be insane.
    In the mean time I don't see how they continue to buy imports, the question is do you keep the people fed or warm or employed?
    Not a place I'd like to be.

    Jul 29th, 2014 - 01:03 pm - Link - Report abuse 0
  • Welsh Wizard

    Yup, was saying this to someone last night...deciding between food and fuel is not an easy choice, very soon we'll see the blue racing away and the central bank back to dropping $100mm per day to try and keep in under control... along with everything else. By the time I get there on the 17th December, it will be a very intereting to see what is happening.

    Here is a good one for all you out there: predicitons for the blue rate and official rate for when I arrive on 17th December...any takers?

    Jul 29th, 2014 - 01:25 pm - Link - Report abuse 0
  • CabezaDura2

    Katia is lovely, Mercopress surely you could have picked a better photo of her

    Jul 29th, 2014 - 02:10 pm - Link - Report abuse 0
  • MagnusMaster

    @2 I think Griesa wouldn't let locate the bondholders anyway, to avoid a change in jurisdiction. If the bondholders can't be identified, they can't waive RUFO.

    Jul 29th, 2014 - 03:43 pm - Link - Report abuse 0
  • Welsh Wizard

    @9 - you don't need court consent, you can just pay an agency to find out.

    Jul 29th, 2014 - 04:27 pm - Link - Report abuse 0
  • Don Alberto

    @ 10 Welsh Wizard who wrote: “you can just pay an agency to find out”

    I somehow doubt it will be possible to locate the present owners of freely negotiable bonds, when there are many millions of them and each may have been sold several times.

    Jul 29th, 2014 - 10:06 pm - Link - Report abuse 0
  • Welsh Wizard

    @11 im a capital markets restructuring lawyer. We have to do this regularly. It's the only way we can get a restructuring done. From what you are saying it would be imposible to ever restructure a DCM deal... What's your area of expertise in this?

    Jul 29th, 2014 - 11:26 pm - Link - Report abuse 0

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