BUENOS AIRES, June 21 Argentina's state oil
producer, YPF, said on Saturday that since it is an
"independent" company its assets cannot be embargoed by
so-called holdout investors who are demanding full payment
following the country's massive 2002 bond default.
The 2nd U.S. Circuit Court of Appeals ruled on Wednesday
that Argentina could not continue to pay creditors who agreed to
restructure their bonds after its 2001-02 default on $100
billion in debt unless it also paid $1.33 billion to the
holdouts demanding full payment.
"YPF is an independent company and is governed as such in
accordance to law. Its assets don't belong to the Republic of
Argentina, and as such cannot be embargoed by the Republic of
Argentina's creditors," the oil firm told Reuters.
President Cristina Fernandez said on Friday her government
would negotiate with all of Argentina's creditors in a bid to
avoid a new debt default that would further weaken the country's
Her government had threatened on Wednesday that it could
default on its debt, saying it could not afford to make its next
bond payment, due June 30, if it had to pay the holdouts as well
as the owners of its restructured bonds.
The holdout creditors are led by NML Capital Ltd, a division
of billionaire Paul Singer's Elliott Management Corp, and
Aurelius Capital Management, chaired by Mark Brodsky.
Argentina struck a $5 billion compensation deal this year
with Spain's Repsol over the 2012 nationalization of
its Argentine energy unit YPF, and agreed to pay $9.7 billion in
overdue debt to the Paris Club of creditor nations.
(Reporting by Jorge Otaola; Writing by Anthony Esposito;
Editing by Peter Cooney)