Monday, December 3, 2012

Paul Singer Just Set Up The Next Battle In His War With Argentina



According to mercopress….the latest battle centers on a ruling that found Argentina violated a bond provision requiring it treat all creditors equally when it paid the exchange bondholders without paying the holdouts. Two US courts have said they should all be paid simultaneously.

On November 21, U.S. District Judge Thomas Griesa ordered Argentina to deposit the 1.33 billion for holdouts including NML Capital Ltd and the Aurelius Capital Management funds by December 15, the same day about 3 billion comes due on growth-linked GDP warrants, issued during Argentina's debt swaps.  This raised fears of another default because if Argentina had refused to pay the holdouts, as expected, US courts could have disrupted payments to the holders of restructured bonds.

Argentina appealed the orders and won an emergency stay, or halt, from the 2nd Circuit Court.
NML and Aurelius argue, however, that Argentina should have to post a security deposit of 1.45 billion, or at least 250 million, by December 10 to ensure the country complies with the court orders if it loses the appeal….

No comments:

Post a Comment