UPDATE 2-Argentina flirts with debt swap as fear of default rises

Comments (1)
GermanHoldout wrote:

“Some people say that we need to negotiate with the vultures,” Kicillof said. “The vultures are vultures because they don’t negotiate. ”

Dear Mr. Kicillof,

the Holdouts are those, who want to negotiate from the beginning. Argentina is the part, which does not want to negotiate!!!

Now after the US Supreme Court rejected Argentina’s appeal, the government of Cristina Kirchner and the Holdouts are forced to sit down and negotiate immediately an acceptable solution, probably under the review of Judge Griesa, to end this HORROR-Default with endless suffering for tens of thousand holdout creditors and their families worldwide.

Most of the Holdouts are “before default buyer”, who have
bought their bonds at an average of 100% or even higher. That is why we cannot accept similar offers as they were in 2005 and 2010.

The “RUFO” clause (Rights Upon Future Offers) expires as
of December 2014. That means, that from 01/01/2015 Argentina can make a better offer to the Holdouts, than it made in 2005 and 2010.

If Argentina and the holdouts made already 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.

Following conditions might be acceptable for the Holdouts and maybe also for Argentina:

Argentina makes a buyback offer of about 130-140% for the
holdouts ( for owing capital+ accrued interest between 2002-2015).

(Argentina owes to today about 230%, a cash buyback of 130-140% would so mean for Argentina already a debt relief of about 100%)

Jun 18, 2014 4:18am EDT  --  Report as abuse
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