BUENOS AIRES, July 31 Argentina's Cabinet chief,
Jorge Capitanich, said on Thursday that if a third party bought
the debt held by holdout investors there would be no breach of a
legal clause that was seen as a major obstacle in their failed
The so-called RUFO clause prevents Latin-America's No. 3
economy from paying investors better terms than those taken by
bondholders who accepted large writedowns in restructurings that
followed its last default in 2002.
Argentina defaulted on its debt for the second time in 12
years at midnight on Wednesday.
(Reporting by Richard Lough; Editing by Alejandro Lifschitz and