| NEW YORK, July 31
NEW YORK, July 31 In the wake of Argentina's
July 30 default on restructured sovereign debt, Bank of New York
Mellon on Thursday gave instructions to creditors for the next
step in exercising their rights to collect on their investments.
In a statement, BNY Mellon said bondholders "shall have the
right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee by the
Indenture with respect to the Debt Securities of such Series."
Argentina and the holdout creditors, who did not participate
in the two prior restructurings of the country's 2002 default on
approximately $100 billion, failed to come to agreement to avert
a repeat default by July 30 despite weeks of talks.
Holders of at least 25 percent of the restructured debt from
2005 and 2010 must now give written notice to both Argentina and
the trustee to declare the debt securities are "immediately due
and payable." This is known as acceleration.
The default is a set back to Latin America's No. 3 economy
from efforts this year to re-engage with international financial
(Reporting By Daniel Bases)