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Breakingviews: Judging Argentina

Monday, Apr 22, 2013 - 03:11

April 22 - Argentina is still battling holdout creditors from its 2005 and 2010 bond exchanges. Richard Beales and Reynolds Holding discuss how judges are making their mark with rulings in the case.

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Argentina's long running legal spat with a bunch of hedge funds' favorites debt restructurings lost decade is -- gala in new quotes for a long time the hedge -- seem to have the league alleged the -- you can look at this and then the real -- -- as -- -- on the bench that judges in New -- -- that's really extraordinary the way that the judges have gotten involved in the nitty gritty of this case I mean just that when they were -- -- -- 2005 -- 1010. The district court judge. You really cajoled the parties and uses legal -- to get them to at least come up with a plan -- that might and his hangover isn't normally to save you guys need to do to Dallas to say this is legal -- -- basically judge you're right you're wrong and -- Reynolds that's little simplistic and and that sort of this that this activist attitude has carried on through. Really last Friday. The of the US Court of Appeals ruled. Then Argentina does in fact have to cough up the one point three billion dollars owed to the holdout creditors. You know despite the fact that 93% of the other creditors country's exchange -- but the courts of law. You know we're gonna do it sort of -- immediately if you think you have a way of paying the -- schedule for paying that would you prefer. Let us know what -- -- because he keeps trying to say Wellington you know -- just guys that when I had to failure bodily repetitive this around a particular way you like and now of course all my creditors Elliott management sentinel capital says forget it. You basically offering the same really we've rejected before. So we're back to square one which is essentially. Argentina looks like it's gonna have to pay you know whether a pace that's -- the real aggressive -- -- a situation where it seems like that's an earlier court decisions on. So we'll not identical similar cases sort of price found that. You know you could kind of squeeze out. The last few credits his madness of it today that I mean they seem to turn that around a little bit. 75% of critters at all regret is that. Argentina did not have that in those agreements they usually get a situation win. Well if you're holed out and you didn't go with the exchange you can say that that the nation still owes you money but trying get that money is very difficult. These judges sort of crafted this method whereby they they hope to end. The payment bank Bank of New York -- the whole system that make any really got on -- Without also paying the holdouts. You're contempt of court which really incidents finds everyone may result in Milan Italy and he's getting -- to that causes a little bit of them what you Michael foreign policy friction I guess -- what -- -- betting the broader point of making his. Countries like go to -- looks at the -- in the world used new laws and US markets in the US those that try to raise money now. The whole point that is it's a credible. Legal system yeah right we'll let you hear of these judges say OK you can go to take the rough with the split it right and they're really putting teeth in the facts and when we say you gotta pay. We're gonna do everything in our power to make you pay. You know and they may have found a way to do that we'll see what happens okay we'll leave it that we will watch this Argentina hedge -- spat at we will have more breaking -- -- -- work.

Breakingviews: Judging Argentina

Monday, Apr 22, 2013 - 03:11

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