MercoPress. South Atlantic News Agency
Special Master Pollack to meet with Argentina's and holdout lawyers next week
Daniel Pollack confirmed that he anticipated a meeting, but declined to provide further details 
Kicillof, currently in the US assured that Argentina will keep on looking for a solution to holdout funds' dispute and will encourage dialogue to reach a deal. A United States court-appointed mediator said on Friday he would hold a meeting next week between lawyers for Argentina and 'holdout' creditors suing the country in a longstanding dispute over defaulted debt.
Daniel Pollack, the New York lawyer appointed to oversee settlement talks, or Special Master, confirmed that he anticipated a meeting, declining to provide further details.
The meeting is expected to focus on how settlement talks should proceed in January after the expiration of a bond clause that the Argentine government has cited as a major stumbling block in cutting a deal, a person familiar with the matter said.
Argentina contends the so-called Rights Under First Offer, or RUFO, clause prohibits it from voluntarily paying the holdouts suing for full payment. The clause expires Dec. 31.
Argentina was declared in 'technical default' in July for the second time in 12 years after refusing to pay 1.33 billion dollars plus interest to bondholders, a group of hedge funds, suing for full payment on defaulted bonds.
The hedge funds, led by NML and Aurelius Capital Management, had spurned Argentina's 2005 and 2010 debt restructurings, which resulted in exchanges for about 92% of the country's defaulted debt.
US Judge Thomas Griesa last month held Argentina in contempt of court, calling “illegal” the country's plans to get around his rulings by making payments locally. This was implemented by the Argentine congress approving the Sovereign Payment law which allows to pay restructured bondholders in Argentina or France, through an Argentine bank.
Argentine Economy Minister Axel Kicillof who is currently in the US for the IMF and World Bank annual assemblies, assured on Friday that the country will keep on looking for a solution to the holdout funds' dispute and will encourage dialogue to reach a deal.
”The government will use up all the judicial, diplomatic, international ways, because we understand this is not a problem between Argentina and Paul Singer (head of NML Capital),” he said.
Judge Thomas Griesa's ruling put the case on an international status, the minister told reporters in Washington.
Holdouts are expected to request Judge Griesa to declare in contempt of court the Argentine Banco Nacion and Central bank as instruments of the Sovereign payment bill. This is because both banks helped Argentina in its efforts to skirt Griesa's ruling pari passu ruling regarding payment of the holdouts.
Top Comments
Disclaimer & comment rules-
-
-
Read all comments”The meeting is expected to focus on how settlement talks should proceed in January after the expiration of a (RUFO) bond clause...”
Oct 11th, 2014 - 04:27 am 0Isn't it the reason why Argentina asked Judge Griesa for a stay of his ruling in the first place?
Still, Argentina should not pay the vultures much more than it paid the exchange bondholders, even if a settlement takes place in January. This type of rapacious schemes must not be rewarded.
May be (hopefully), from the 1. of January 2015 (expire of the RUFO clause) we will see another President Kirchner and Economy Minister Kicillof.
Oct 11th, 2014 - 05:22 am 0It would be a historic event and come in the historic books, if President Kirchner after 13 years finally finished this HORROR Default with an amicable agreement with the holdouts.
An agreement with the Holdouts would be a win-win situation for everybody!
For Argentina, for the Holdouts and also for the exchange bondholders, whose bonds rates would also be considerably increased.
A completed final agreement with the Holdouts would improve Argentina's ratings, initiate a firework of investments and enable also cheaper credits for argentine companies.
Also seizure risks and a technical Default would be immediately averted. Argentina could immediately return to the capital market and thus Argentina could refinance the payments to the holdouts, without using reserves.
HOW COULD BE THE CONDITIONS FOR THE REPAYMENT?
Argentina owes to today about 230% to the Holdouts (since 2002
Argentina had not repaid a cent to the holdouts)
- after the end of RUFO clause Argentina should repay in CASH 100% of the nominal value of the defaulted bonds, which became due before 2015.
- For the accrued interest between 2002-2015 (until now about 130%), Argentina would emit new bonds with a maturity of 5-7 years.
@1: are you member of the ck robberment gang?
Oct 11th, 2014 - 08:19 am 0or do you like to be robbed by a criminal robberment gang?
not me! they have the money to pay their outstanding debts and they HAVE to pay!
I am a private creditor like thousands others and no vulture and expect to get repaid what has been credited 20 years ago.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!