UPDATE 3-U.S. judge says Argentine debt payment illegal, should be returned

Comments (3)
GermanHoldout wrote:

What could be the solution to solve immediately the Holdout problem?
Argentina owes to today about 230% to the Holdouts (capital + accrued interest since 2002)
If Argentina made a buyback offer of about 150-170%, it presumably would not violate the RUFO clause, because it would not be an exchange offer.
A buyback offer through a bank would definitiv not violate the RUFO clause.
Such a cash buyback would also give Argentina a debt relief ob about 60-80%.

Jun 27, 2014 6:50pm EDT  --  Report as abuse
Errata wrote:

The question of the century is why Judge Griesa has been so patient and has not yet found Argentina to be in contempt. The papers here in Argentina are already batting around DESACATO and speculating on when Griesa will bring the hammer down.

Jun 27, 2014 11:54pm EDT  --  Report as abuse
emassot wrote:

If you were an Argentine citizen you would expect your government to obtain the best payment conditions on your behalf–that is exactly what Nestor and Cristina Kirchner have been doing since 2003.
At the same time, they have achieved impressive growth rates, dramatic improvements for the most impoverished, and improved housing, health and education.
Only a tiny portion of creditors known as vulture funds bought distressed bonds for pennies, and have used the courts as their collection agencies.
By blindly siding with Paul Singer, Judge Thomas Griesa has now revealed the extent of his partiality. Argentina paid, in time as scheduled. Griesa is attempting to push Argentina’s official agent New York Mellon Bank to send the money back to the country.
This decision shows Griesa as holding hostage 92 of bondholders on behalf of 1 per cent of the holdout creditors (Singer). The other seven per cent of holdouts did not sue.

Jun 28, 2014 6:40pm EDT  --  Report as abuse
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