UPDATE 1-Argentine Exchange Bondholders with 30 pct of debt seek resolution

Comments (1)
GermanHoldout wrote:

President Kirchner (by the way a beautiful women) should end this since 2002 ongoing HORROR-Default and solve the holdout problem NOW!

President Kirchner should show goodwill and offer an ACCEPTABLE solution for the holdouts, so she could be dealt in the history books as the solver of the decade old default.

President Obama and the IMF should help and talk to President Kirchner to end Argentina’s Horror-Default.

Argentina should solve not only the Paris Club but also the Holdout Problem!

We, the holdouts, have been suffering for more than a decade!!!

We are in contrast to the Paris Club human beings!

To reach an Agreement with the holdouts would probably take only a few hours…

Reconciliation with the holdouts would improve Argentina’s ratings; initiate a
firework of investments and also cheaper credits for argentine companies.

If Argentina and the holdouts made NOW A BINDING AGREEMENT with respect to the “time after” (end of the “Rights Upon Future Offers (RUFO) clause in December 2014), seizure risks and a technical Default would be immediately averted. Argentina could immediately return to the capital market and thus Argentina could refinance the payments to the holdouts, without using reserves.

Holdouts want a simple, clear, secure and an ACCEPTABLE solution.

Holdouts DO NOT want such exotic financial constructs, as they were the swap conditions in 2005 and 2010, with an exorbitant Haircut, with many new bonds, with only Discount bonds above $50000, GDP Warrants etc., and with maturities in the eternity. Such “shares like” financial constructs are inacceptable.

A swap from the defaulted old bonds to new bonds is unacceptable also for tax reasons. In Germany, for example, if you would accept a swap, then you would have to pay for the new bonds 30% extra tax …

Following simple conditions might be acceptable for the Holdouts on the basis of the old bonds.(Without swapping from old to new bonds, also because of tax reason)

- at the latest, on 01/01/2015 (end of RUFO clause) Argentina should repay in CASH 100% of the nominal value of the defaulted bonds, which became due before 2015.

- For the accrued interest between 2002-2015´Argentina should emit new bonds with 50% discount, and with a maturity of 5 years.

Jan 25, 2014 9:49am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.