US court blocks Brady bonds swap
A bond holder who sued Argentina when the country stopped paying its debt in 2002, received a favorable ruling from a US court, which blocked a debt swap of unpaid Brady bonds for a total amount of 270 million dollars, which were negotiated in 2011.
The ruling, which issued by the Second Circuit of New York Appeals court, keeps the original embargo orders of assets that guarantee the Brady bonds, which were conceded to plaintiff Capital Ventures International.
The ruling implies that the guarantee could be seized by the plaintiff, who seeks to recover the total value of its unpaid Argentine debts if the debt swap proceeds.
The Brady bonds connected to the case expire in 2023 and the guarantee will be returned to Argentine if the country pays the total amount. If Argentina doesn’t pay its debt, the bondholders will be paid that money.
According to the ruling, “Argentina doesn’t show proof that a failure of this operation will have important effects in its finances or in its capacity to gain access to capital markets. We don’t see sufficient extraordinary circumstanced to justify a special modification to embargo orders.”
http://www.buenosairesherald.com/article/73620/us-court-blocks-brady-bonds-swap
The ruling, which issued by the Second Circuit of New York Appeals court, keeps the original embargo orders of assets that guarantee the Brady bonds, which were conceded to plaintiff Capital Ventures International.
The ruling implies that the guarantee could be seized by the plaintiff, who seeks to recover the total value of its unpaid Argentine debts if the debt swap proceeds.
The Brady bonds connected to the case expire in 2023 and the guarantee will be returned to Argentine if the country pays the total amount. If Argentina doesn’t pay its debt, the bondholders will be paid that money.
According to the ruling, “Argentina doesn’t show proof that a failure of this operation will have important effects in its finances or in its capacity to gain access to capital markets. We don’t see sufficient extraordinary circumstanced to justify a special modification to embargo orders.”
http://www.buenosairesherald.com/article/73620/us-court-blocks-brady-bonds-swap
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