By Daniel Bases
NEW YORK Jan 24 Investors managing nearly $7
billion of restructured Argentine sovereign bonds say they are
willing to negotiate an end to a decade-long fight by holdout
investors who refused to participate in two prior government-led
In a statement on Friday from the ad hoc group's legal
adviser Linklaters, this group of so-called Exchange Bondholders
says it now represents close to 30 percent of outstanding
restructured debt managed by more than 20 asset managers.
"The Lead Committee is actively working with Deutsche Bank
and is in the process of formalizing an engagement with Deutsche
Bank for it to advise the Lead Committee in connection with the
structuring of an inter-creditor transaction," the statement
In November, the ad hoc committee was formed in order to
propose a resolution to end a standoff with holdout investors
who did not want to take part in the restructurings stemming
from the 2001 sovereign debt default, then the largest in
Linklaters was hired in December by the ad hoc group of
asset managers that participated in the 2005 and 2010 exchanges.
Argentina has been ordered by a U.S. court to pay the
holdouts $1.33 billion at the same time it pays Exchange
Bondholders their principal and interest, something Buenos Aires
said it would never do. Failure to make payments to both groups
concurrently would result in a default on the already
Gramercy Funds Management is one of the lead members of the
ad hoc group. It said in November that it wanted to come to a
resolution and avoid a default by Argentina.
Holdout investors NML Capital Inc, a unit of Paul Singer's
Elliott Management Corp, and Aurelius Capital Management have
led the deep-pocketed legal fight against Argentina.
Spokesmen for both Elliott and Aurelius declined to comment
on the Linklaters statement.
Sources familiar with both sides say there has been no
formal contact between the committee and the holdouts.
One source said the ad hoc group has a steering committee of
three firms, including Gramercy Funds Management and Fintech
Advisory Inc, run by financier David Martinez. The name of the
third firm was not immediately known.
Marty Flics, one of the lead partners on the matter for
Linklaters, declined to comment on structure of the ad hoc
Creditors holding about 93 percent of the defaulted debt
agreed to participate in the debt swaps in 2005 and 2010 that
gave them between 25 cents and 29 cents on the dollar.