From Latin American HT: “Who could’ve thought that two Latin words could’ve given so much hope to bondholders?” Russell Dallen, head bond trader at South American investment bank CCM, said. “This is really putting Argentina in a corner. There’s a chance that people that hold this debt will have to be paid.” The almost 40 percent surge in Argentina’s defaulted bonds since billionaire Paul Singer’s victory in U.S. courts shows creditors are gaining confidence they will also recoup their money.
Euro bonds from Argentina’s $95 billion default in 2001 have
risen 7 cents to 25 cents on the dollar since Oct. 26, when a U.S. Appeals
Court ruled the nation can’t refuse to pay so-called holdouts while making
payments on restructured debt, according to Exotix USA Inc….Singer is
bolstering the chances creditors from Frankfurt to Rome, including some who
invested in South America’s second-biggest economy for retirement income, will
succeed in their own decade-long battles to win a payout. Holders of the
defaulted notes may file as much as $4 billion in claims adopting the same
legal argument used by Singer, which states that a so-called pari passu clause
entitles bondholders to equal treatment, said Estudio Garrido, a Buenos Aires-based
law firm.....
Get the big picture at http://www.laht.com/article.asp?ArticleId=632666&CategoryId=14093
No comments:
Post a Comment