July 28, 2014 / 8:30 PM / 4 years ago

Argentina debtholders offer to waive clause -FT

July 28 (Reuters) - A group of Argentina’s creditors holding “restructured” debt have offered to waive a clause that would help the country avoid a default, the Financial Times reported on Monday, citing unnamed sources.

The FT reported that holders of more than $4 billion of Argentina’s discount and par eurobonds sent a letter to Daniel Pollack, the court-appointed mediator in the Argentina debt talks, offering to speed the settlement talks.

They have offered to waive the rights upon future offers, or RUFO clause, which stipulates that any deal reached between Argentina and holdout hedge funds must compensate bondholders who accepted restructured debt in 2005 and 2010.

This report mirrors statements made on July 22 in open court by lawyers representing euro-denominated exchanged bondholders. Christopher Clark, a lawyer at Latham & Watkins for the exchange bondholders, told U.S. District Judge Thomas Griesa that “we would certainly be willing on behalf of our group to consider and accept a fair and effective waiver of the RUFO clause if that would help negotiations.”

Reuters has not independently verified this information. Pollack did not respond to requests for comment.

Prices of Argentina’s global discount bonds due in 2033 were bid down 2.11 cents on the day, trading at 83.95 cents on the dollar, boosting the yield by 0.32 percentage point to 10.47 percent. (Reporting By David Gaffen; Editing by Diane Craft)

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