UPDATE 3-Argentina to file bond petition to U.S. top court next week -report

Comments (2)
GermanHoldout wrote:

In the “Pari Passu” issue the Holdouts are 100% right! It would be helpful, if Argentina did not file a Supreme Court appeal in February against the ‘pari passu’ judgment, but if, the US Supreme Court promptly rejected it.

Argentina should rather sit down and negotiate an acceptabble solution with the Holdouts, NOW!

Argentina’s nightmare default, this since 2002 ongoing HORROR must finally have an end!

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

Beyond the U.S. Hedge Funds there are still tens of thousands retail Holdouts worldwide, most of them from Italy and Germany.

Most of the Holdouts are “before default buyer”, who have bought their bonds at an average of 100% or even over.

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

Argentina clearly has the capacity to repay the debt to the holdouts after more than a decade!

If Argentina and the holdouts made NOW A AGREEMENT, seizure risks and a technical Default would be immediately averted and Argentina could immediately return to the capital market.

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 accepted 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.

Feb 11, 2014 9:28am EST  --  Report as abuse
GermanHoldout wrote:

citation: “So Buenos Aires is eager to regain access to the international capital markets from which it has been shut out since the 2002 default.”

Answer:
A 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 an agreement, 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.

Feb 12, 2014 1:16pm EST  --  Report as abuse
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