Arab Today, arab today argentina proposes 13bn debt payments with conditions
Last Updated : GMT 13:20:23
Arab Today, arab today
Arab Today, arab today

Hedge funds demand ‘significant compensation’

Argentina proposes $1.3bn debt payments with conditions

Arab Today, arab today

Arab Today, arab today Argentina proposes $1.3bn debt payments with conditions

President Cristina Kirchner has already branded hedge funds as ‘vultures’
New York – Arabstoday

President Cristina Kirchner has already branded hedge funds as ‘vultures’ New York – Arabstoday Argentina offered two New York hedge funds to repay its debt to them with cash and new bonds on conditions similar to those used in a 2010 debt swap .The South American nation is facing a court order to pay out $1.3bn to bondholders on debt it defaulted on during its 2001 financial crisis.
The offer was contained in a filing to the New York Court of Appeals.
\"The Republic proposes, following the terms of the 2010 exchange offer, to compensate plaintiffs with their choice of par or discount,\" said the document filed by the law firm of Cleary, Gottlieb, Steen & Hamilton, as expected, shortly before midnight on Friday.
Argentine President Cristina Kirchner has already said she is willing to re-extend the restructuring terms of 2005 and 2010 to hedge funds NML Capital and Aurelius Capital Management, which she has branded \"vultures.\"
That offer would repay the investors around 70 percent of their capital in nominal terms as the bonds mature in the next 28 to 33 years.
Those terms were already accepted by holders of 92 percent of the bonds but have been rejected by the holdouts.
If Argentina\'s latest offer is rejected, the government would be forced to repay the hedge funds in full now, as New York judge Thomas Griesa ordered late last year in a landmark judgment.
But because of \"pari passu\" or \"equal treatment\" clauses in the restructured bond contracts, Buenos Aires could be forced to pay back all others at the same time, possibly forcing it to default on all its debt.
\"The proposal fulfills the court\'s dual objectives to satisfy the pari passu clause: non-discrimination in payment priority and equal treatment among bondholders,\" the Argentine document said.
\"This proposal is a voluntary option: plaintiffs can choose between being paid \'equally\' on the same terms as the exchange bondholders, or obtaining, and seeking to execute on, judgments for the full amount of their claim,\" it went on to say.
According to the filing, plaintiffs will receive \"significant compensation\" while the country\'s capacity to pay will be preserved.
Argentina defaulted on some $100bn in debt in 2001, and has since restructured its debt twice, covering around 75 percent of the nominal value of the bonds.
But hedge funds NML Capital and Aurelius Capital Management, which bought up some of the original defaulted debt at steep discounts, refused to go along with the restructuring and are suing to recover 100 percent of the bonds\' value, a total of $1.3bn.
In an October ruling, the appeals court upheld a lower court ruling that Argentina would have to repay both sets of the bonds.
Analysts do not expect the Buenos Aires plan to be accepted, leaving Argentina little legal recourse but to comply and multiply its debt problems or appeal to the US Supreme Court.
\"If you have a judgment for $1.3bn, you are not going to be told that you have to accept, in lieu of your money, new bonds with new terms,\" said Richard Samp, chief counsel of Washington Legal Foundation.
The case has sent tremors throughout the world of sovereign bonds because of the precedent it could set for the rights and treatment of investors who refuse to go along with debt restructuring pacts after defaults.
If the hedge funds are allowed to collect everything they claim, it could make it impossible for defaulters to restructure their debts without 100 percent participation from investors.
In a letter published in the Financial Times Thursday, Aurelius Capital Chairman Mark Brodsky argued that was not likely to happen.
Even after the ruling against Argentina last year, he said: \"Greece conducted a restructuring far larger than Argentina\'s.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today argentina proposes 13bn debt payments with conditions Arab Today, arab today argentina proposes 13bn debt payments with conditions

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today argentina proposes 13bn debt payments with conditions Arab Today, arab today argentina proposes 13bn debt payments with conditions

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Saudi witnessing a remarkable growth

GMT 09:57 2017 Saturday ,23 September

Saudi witnessing a remarkable growth
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday