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Aurelius hedge fund “baffled” by Argentina's decision to 'continue litigation'

Saturday, February 13th 2016 - 05:40 UTC
Full article 33 comments
Given “the choice between accepting the substantial haircut we have offered, continuing negotiations, and litigating, Argentina chose to litigate”, said Brodsky Given “the choice between accepting the substantial haircut we have offered, continuing negotiations, and litigating, Argentina chose to litigate”, said Brodsky
In court papers filed Thursday, Argentina asked Judge Griesa to lift injunctions he issued in the case if Argentina repeals two local laws regarding debt deals In court papers filed Thursday, Argentina asked Judge Griesa to lift injunctions he issued in the case if Argentina repeals two local laws regarding debt deals
Negotiations and the proposed settlement comes, as promised by president Macri, from the moment he took office last December. Negotiations and the proposed settlement comes, as promised by president Macri, from the moment he took office last December.

Hedge fund Aurelius Capital Management, one of the major creditors in the Argentine bond litigation who has not agreed to participate in a proposed $6.5 billion settlement, called Argentina's decision to return to court in the dispute “baffling.”

 The hedge fund issued the statement after Argentina on Thursday asked a New York federal judge to vacate orders restricting it from servicing its restructured debts in light of last week's settlement offer by the country.

Mark Brodsky, Aurelius' chairman, said given “the choice between accepting the substantial haircut we have offered, continuing negotiations, and litigating, Argentina chose to litigate.”

“This is a baffling continuation of the failed strategy of the past,” Brodsky said in a statement. Lawyers for Argentina had no immediate comment.

Brodsky argued that Dart and Montreux would receive more than 100% of what they were owed. “For most other claims, Argentina proposes to pay not even 70% of the claim, but 70% of a substantially reduced claim — a double haircut. Holders of less than 5% of the claims have accepted that haircut,” added Brodsky.

In court papers filed on Thursday, Argentina asked US District Court Judge Thomas Griesa to lift injunctions he issued in the case if Argentina repeals two local laws regarding debt deals and pays any creditors who settle by February 29.

Argentina's lawyers said vacating the injunctions would allow it to tap global capital markets to fund the settlements and to remove an incentive for the remaining suing bondholders to not settle on “reasonable terms.”

Two out of six leading bondholders have already accepted the offer, court-appointed mediator Daniel Pollack said. The offer represents a 27.5% to 30% discount for creditors who filed claims of about $9 billion.

But others, including leading Aurelius and Elliott Management's NML Capital Ltd, have not yet said if they would agree to take the deal. The proposed settlement came less than two months after President Mauricio Macri took office and expressed his commitment to a deal.

Categories: Economy, Politics, Argentina.

Top Comments

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  • CapiTrollism_is_back!!

    The old fart still no get... You have already lost. Long ago... lost so much:

    1. Lost almost 20 years of your lives for starters. Never coming back for you.
    2. Your reputation around the world has been thoroughly traduced. You are now forever “vultures” no matter where you go lol.
    3. The laws around the planet have changed forever on sovereign default. In your myopic attempts to extort Argentina you and your lover Singer have SELF-SABOTAGED any similar devious subterfuge in the future. Had you settled for a bit less here the door would still be open for many more criminal acts of distressed debt. But your paucity of vision and short-term grred stultified your minds.
    4. All the court costs.
    5. And after all that you still have not seen a centavo!

    Talk about losing a war to win a battle. Except that they may still lose the battle! Loosers.

    Feb 13th, 2016 - 06:32 am 0
  • chronic

    lol.

    Poor clueless troll.

    You still seem incapable of comprehending what has transpired here.

    Singer has already paid himself vis a vie his speculation in the rottingroadkill equity markets as he whip sawed it to and fro.

    The game has already been won by Singer and lost.by rottingroadkill.

    The bond redemption is now for fun and profit.

    Are you really this stupid?

    Feb 13th, 2016 - 09:03 am 0
  • CapiTrollism_is_back!!

    And who cares what happens in a stock market? That's why it's there, it's just another form of gambling and affects no one in Argentina. If he did make money like that, then I could care less.

    But given this information comes from YOU, and avowed anti-Semargie who would like nothing better than our extermination from the planet.... I will conclude it's just nonsense as usual from you.

    Feb 13th, 2016 - 10:52 am 0
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