Well, little surprise here. Holdout funds, led by Elliott, the US fund, rejected late Friday Argentina’s offer to pay them only on the same terms as two previous debt swaps.
In a filing with the Second Circuit Court of Appeals on Friday, the holdouts said Argentina continued to show “contempt for its obligations, the laws of the United States, and the orders of U.S. courts.” They claimed they are owed $1.4bn in principal and interest on the bonds. Continue reading »
The main players are the same – Argentina, holdout creditors. But does the US Supreme Court’s request for the US government to give its opinion in an Argentine appeal regarding bank assets mean that it is interested in getting involved in the ongoing holdout saga over equal treatment, or pari passu?
The final judgement in the legal battle between hedge funds and Argentina is on the horizon – a case that is pivotal to the sovereign debt market. Robin Wigglesworth, capital markets correspondent, discusses with Michael Stothard whether the outcome could trigger another Argentine default.
A decade-long battle stemming from Argentina’s epic 2001 default has reached a critical stage. Courts recently required Argentina to uphold a promise in its bond contract to rank its debts equally, following years of orchestrated repudiation. The so-called pari passu case in New York is being closely watched across the world for the possible implications it could have for future sovereign debt restructurings.
Argentina and its defenders claim that if recent US court rulings against it are upheld, then other sovereign debt disputes cannot be resolved. They argue that an unfavourable court ruling will in effect prevent countries from tackling unsustainable debt burdens in the future.
But this argument misunderstands the fundamental issues raised by this case. Continue reading »
The market is not liking Argentina’s offer to holdout creditors.
News that the country has offered to pay holdouts only on the same terms as two previous debt swaps pushed yields on Argentina’s restructured note due 2033 up to a fresh high on Monday. Continue reading »
Argentina has filed its long-awaited offer to holdouts to a New York appeals court. The biggest surprise is that some people were expecting (hoping?) it would actually contain some surprises.
Alas it did not: Argentina is offering the same bond combo as it offered in its 2005 and 2010 debt swaps. There was no immediate word from the holdouts led by Elliot, a US fund, but it’s safe to say that since Argentina is offering the same package Elliot has turned down twice before, it may not be rushing to sign up this time. Continue reading »
In the case between the Argentine government and the “holdout” bond holders, Puente was the only investment bank that filed an amicus brief in support of the government. We did so because, as one of the largest sovereign, provincial and corporate bond traders, we understood we had a professional and moral duty to defend not only our numerous clients but also the millions of Argentineans who will be severely harmed if Argentina goes into default.
With Friday’s deadline for Argentina to make an offer to the holdouts approaching, Buenos Aires must stick to its guns. Continue reading »
Vladimir Werning over at JP Morgan has done some helpful maths and analysis to weigh up what Argentina needs to offer holdouts in its March 29 submission to the Second Circuit Court of Appeals as the climax of its “equal treatment” court saga nears. Continue reading »
Just three days before the deadline for Argentina to spell out its offer to holdout creditors, a US appeals court has slammed shut one of Argentina’s possible avenues of appeal – piling more pressure on Buenos Aires to make sure its offer on Friday is good.
Argentina had requested an ‘en banc’ hearing – that is, a rehearing by all 13 judges of the Second Circuit court of appeals, rather than allowing a three-judge panel to have the final say – after the second circuit last October upheld parts of a controversial ruling by New York judge Thomas Griesa. Continue reading »
The day has arrived. The New York courtroom will be packed to the gunnels – even Argentina’s vice president and economy minister will be on hand as the dramatic “holdout” saga nears its finale. The lawyering will be slick, the arguments sophisticated. So who will win? Continue reading »
Argentina’s debt management is going to be firmly in the spotlight next Wednesday, when it squares off against so-called “vulture funds” in a New York appeals court in the pari passu case that, in the worst-case scenario, could spell a fresh default.
That’s a story for another day. But while we’re on the subject of Argentina’s debt policy, Luis Secco, an independent economist, has had a closer squint at the government’s record on debt reduction – a key tenet of government policy. Continue reading »
Eva Geller’ parents, Holocaust survivors from Germany and Austria, always taught her that two things were important in life: education and savings.
“Every penny I got from my grandparents, I put in my piggy bank. I saved all my life,” said Geller, who was born in Uruguay where her parents moved after the war. Having been advised that Argentina was a “very strong government with a very firm government” Geller not only poured her life savings into Argentine bonds, but also advised her Austrian mother, now 90, to buy them too. The rest is history. Continue reading »
After more than three years of fully open access, we are taking the step of asking our readers to register on FT.com to read our articles. Beyondbrics will still be free but we'd like to know a bit more about you, our readers. Other FT blogs (including Alphaville) already do the same thing. Registration is active on beyondbrics from May 6.
Many of you are already registered on FT.com, or are subscribers - in which case, if you are logged in to the site you will not notice any difference. Just carry on as before.
For those of you not yet registered, it's a simple process which only takes a few moments.
Reading beyondbrics articles will NOT deduct from your free monthly quota of stories on FT.com.