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Breakingviews: No crying for Argentina

Tuesday, June 17, 2014 - 03:19

Breakingviews editors recap the end of Argentina's U.S. legal battle to avoid paying holdout creditors and outline some of President Cristina Fernandez's options.

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Argentina has been locked in a legal battles -- investors including some hedge funds one called Elliott management. -- an old -- of the country which from most other investors was restructured back in 20052010. Now. The legal battle is over Iran but the award doesn't seem to. Oh that's right the Supreme Court refused to take Argentina's appeal largely to a couple of years ago he was district court judge. -- -- I mean Argentina was ordered a long time ago to behave this that'll -- unedited right holdout creditors. The question was sergeant how do you enforce that and that is how do you make cars that causes is having because of contain. Chose to write that bones and a new -- Bryant an annual general issued these -- way back when the market was uncertain enough about Argentina as a credit to the -- some assurances -- -- Issaquah. What happened government buying new York law you know be in the US. What could go wrong wrong when I mean as a and it turns out a lot and and right and as I say the real issue was. How to of these creditors get -- to pay a couple of years ago a judge came up with a very sort of creative ways to look. If you pay anything you pay the exchange on hold. Visited new -- also have to okay. The old box. And if you don't do that. In an interview with the trustee and all the other people the banks and payment system if you help from. Do otherwise you're going to be in contempt of court which which really sort of ties have regrets and that's really now this legal process that confident because the Supreme Court. That Washington Argentina kill all of these you went. So they they sit there and -- an area so it's open legally as but. You go Cristina Fernandez. He basically saying we will -- be extorted -- we're not enemies objective this kind of pressure now right so. What does that mean right well. Last week there was legal memo. Leaked Argentina's lawyers did a memo for their clients and look here are your options -- -- options was. Default on all the pounds restructure -- leading the New England including the exchange. Restructure them issued them again outside the reach of US courts outside of the United States. So you're not gonna be subject theoretically to junction all the stuff that's been going to make them -- they have to get a lot of people use to some some other lol you know. Framework of -- plus that I think I think he was saying anybody in the US it sort of helps with the about a -- would mean something and want anyone else without -- process including probably or certainly the thankfully payment agent certainly anyone involved. Right in the restructuring. Would be subject to contempt of court. And nobody's gonna wanna touch that nobody in the US nobody -- that possibility he learned is that -- what other options that. Well I mean the option is to pay the option is I think the Supreme Court wishing -- best option is set -- when these headphones. Work that deal. Do it fast -- you gotta make payments fine with the grace period by the end of July so kept talking settle this thing that's going to be the best option for all concerned. All right thanks remotely that there will follow this story as it on line is probably slowly. And reliable breaking -- you tomorrow.

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Breakingviews: No crying for Argentina

Tuesday, June 17, 2014 - 03:19