Arab Today, arab today us court clears argentina to pay hedge funds in debt battle
Last Updated : GMT 22:53:47
Arab Today, arab today
Arab Today, arab today

US court clears Argentina to pay hedge funds in debt battle

Arab Today, arab today

Arab Today, arab today US court clears Argentina to pay hedge funds in debt battle

View of the Congress in Buenos Aires, Argentina
New York - AFP

A US federal appeals court on Wednesday cleared Argentina to make payments on its debt, paving the way for the country to settle its long battle over bonds defaulted in 2001.

A three-judge panel rejected an appeal from some holdout creditors of a March ruling that removed injunctions blocking the payments.

Argentina will thus be able to follow through on settlement deals with holdouts over some $9 billion in claims.

The appeal had held up the country's plans to raise some $12.5-15 billion on global capital markets needed to pay off the creditors, who have battled for full compensation for their bonds for years.

The injunction had prevented Argentina from servicing its existing debt, and if it remained in place, the new bonds could not have been sold.

The ruling took a decade-old battle nearer to final resolution, and analysts said it could help begin the revitalization of Argentina's economy.

Until President Mauricio Macri took office in December, Buenos Aires had rejected the claims of the holdouts, most of them hedge fund investors, labelling them "vultures" for having refused to support the restructuring of the country's debt.

But the dispute had prevented Argentina from being able to raise any more funds in world capital markets and hobbled its economy.

Reformist Macri opened new talks over more than $9 billion in claims for principal and interest on the bonds in February, and has struck compromise deals over most of them.

But some of the creditors moved to keep the court's hold on debt payments in place, worried that if it was lifted, Argentina might not fully follow through with what it promised to the holdouts.

However, the New York court said none of the compromise deals would move ahead if the country remained blocked by the injunction.

- Deadline challenge remains -

Argentina defaulted on close to $100 billion in bonds in 2001 and over the subsequent nine years reached international agreements to restructure the debt with about 93 percent of creditors, who agreed to sharp writedowns of their bonds' value.

Many of the holdouts though bought the bonds at steep discounts after the default and sued for full payment rather than back the restructuring. In a controversial decision in 2012, a New York court backed their claim.

There is still a hiccup in the process, however. The fight over the injunction delayed Buenos Aires' new bond issues, making it virtually impossible for the country to meet the April 14 deadline for payments set in the February agreements with holdouts.

But analysts said they expect creditors to agree to a little more time to allow the bond issue, already in the hands of underwriters, to get underway this week.

"We do not intend to terminate tomorrow," said Matthew McGill, a lawyer for NML Capital, one of the two hedge funds that have led the decade-long battle for payment.

"The immediate implication of the ruling is that a large $15 billion bond issuance will now take place imminently," said Edward Glossop at Capital Economics.

Of that, he said, $11 billion will go to resolve holdout and other claims left over from the 2000s.

The rest will support the country's reserves as Macri implements a difficult reform program.

 

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 us court clears argentina to pay hedge funds in debt battle Arab Today, arab today us court clears argentina to pay hedge funds in debt battle

 



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 us court clears argentina to pay hedge funds in debt battle Arab Today, arab today us court clears argentina to pay hedge funds in debt battle

 



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 Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
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 Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
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 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
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 Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
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 Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

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