Monday, February 25, 2013

Final Clash: Argentina and ‘holdout hedge funds’ prepare




The long-awaited showdown in a US appeals court this week pits Argentina against a group of investors who refused to swap their debt after the country's historic 2002 default.
Argentina risks defaulting again, this time on 24 billion in restructured debt if it sticks to a vow never to comply with orders to pay so-called “holdouts” but still tries to pay the vast majority of investors who exchanged their bonds in 2005 and 2010.

Buenos Aires calls the holdouts vultures for buying the debt at a steep discount and then demanding full payment in the aftermath of the country's crippling economic crisis. The holdouts, led by NML Capital Ltd, an affiliate of hedge fund Elliott Management, and Aurelius Capital Management, counter that they're just trying to hold Argentina to its obligations and that the country has plenty of reserves to pay them….

No comments:

Post a Comment