A Manhattan federal judge holds the key to Argentina’s
future. The South American country will
ask Judge Thomas Griesa this morning for more time to fight a ruling that it
must make a $1.3 billion bond payment to hedge fund billionaire Paul Singer
alongside other bondholders.
If Judge Griesa denies Argentina’s request, the country will
face two equally distasteful decisions. It
could either pay Singer’s Elliott Management, a firm Argentina President
Cristina Kirchner has already called a “vulture” and swore never to pay — or
not make a December payment to any bondholder and thus risk a default that
could bankrupt the country.
A lawyer for Argentina said not giving the country more time
to argue over Singer’s bond payment would be “bizarre.” In case you forgot Elliott is one of a
handful of bondholders who didn’t agree to a 70 percent haircut several years
ago as part of an Argentina debt restructuring.
No comments:
Post a Comment