Gesamtzahl der Seitenaufrufe

Dienstag, 27. November 2012


Debt Coverage:
 
Financial Times: “Guest post: what Argentines really worry about”
 
Financial Times: “Argentina seeks halt to $1.3bn debt order”
 
Financial Times: “Stop, in the name of restructured Argentine bondholders”
 
MercoPress: “Investors holding restructured Argentine bond also appealed Judge Griesa’s ruling”
 
Bloomberg: “Restructured Argentine Bond Holders Seek Emergency Stay”
 
Reuters: “UPDATE 3-Argentina appeals US court order to pay holdout bond investors”
 
Bloomberg: “Argentina Calls on U.S. Court to Reinstate Stay Through Appeals”
 
Open Democracy: “Vultures are circling the carrion of sovereign debt”
 
Reuters: “The consequences of Elliott vs Argentina”
 
ABC News: “Argentina Hopes to Reverse NY Debt Ruling”
 
MercoPress: “Ambassador Arguello says Argentina will not pay the price of the ‘North’s financial irrationality’”
 
Forbes: “Billionaire’s Hedge Fund Rebuffs NY Fed in Argentina Case: No Risk To $2.6T Payments System”
 
MercoPress: “The Chicago Tribune on the bonds dispute, ‘Cry for yourself, Argentina’”
 
CNBC: “Faber Report: Argentina Challenges NY Court” (VIDEO)
 
Financial Times: “Sovereign debt after Judge Griesa”
 

Financial Times
 
Tuesday, November 27, 2012
 
By Federico Sturzenegger
 
Last week Judge Griesa ruled that Argentina should pay to a holdout fund by the name of NML before December 15 the full amount of debt owed by the country. The ruling followed a previous one, based on the pari passu clause, which said that Argentina should pay at least something to the holdouts.
 
On October 26 the 2nd court of appeals confirmed the ruling but asked the judge to make a proposal on how he interpreted the application of pari passu. In turn, Judge Griesa asked Argentina to make a proposal.
 
 
Financial Times
 
Tuesday, November 27, 2012
 
By Jude Webber and Robin Wigglesworth
 
Argentina has asked a US appeals court to reimpose a stay on payment to hedge funds that hold defaulted bonds that was lifted by a New York judge last week.
 
Buenos Aires and holders of Argentine restructured bonds filed separate motions on Monday, arguing that New York’s reputation as a financial centre was at stake. Argentina is trying to escape a Catch 22 ruling on an “equal footing” clause that has triggered fears of a fresh default 11 years after the country defaulted on $100bn in foreign debt.
 
 
Financial Times
 
Tuesday, November 27, 2012
 
By Joseph Cotterill
 
Stay, actually. An emergency motion for a stay on Judge Griesa’s sweeping order in the Argentine bond holdouts case — filed on Monday night by the Exchange Bondholder Group (update – the FT’s Jude Webber also reports Argentina itself later filed):
 
Click for the motion to stay. There’s also a motion to intervene as a group of interested non-parties (see update), a declaration and documents from a lawyer for the bondholders, and a declaration from Stephen Choi, NYU law professor. (All H/T the FT’s Robin Wigglesworth)
 
(Update – Judge Griesa denied a motion to appear as interested non-parties – and denied a motion to vacate.)
 
It’s another twist in the case, though holders of Argentina’s restructured debt had been outraged last week by Judge Griesa’s revised order on the Republic to pay holdouts — and order on third parties to comply. Those holders include Gramercy and Brevan Howard.
 
 
MercoPress
 
Tuesday, November 27, 2012
 
Lower Manhattan Judge Griesa ordered late on Wednesday that Argentina immediately pay a separate group of holdout investors, who rejected two debt restructuring offers made in 2005 and 2010, the 1.33 billion in judgments they have won in court, a stinging blow to Argentina’s efforts to overcome a 2002 debt crisis.
 
“Given Judge Griesa’s obvious frustration with the Republic of Argentina, we expected this ruling. What we did not expect was the disregard of innocent Exchange Bond Holders’ due process rights,” said Sean O’Shea, a lawyer representing Gramercy, a group comprised by hedge fund investors that represent 93% of the total bondholders that agreed to Argentina’s two debt swaps offered.
 
 
Bloomberg
 
Tuesday, November 27, 2012
 
By Katia Porzecanski and Bob Van Voris
 
Holders of Argentina’s restructured bonds asked for an emergency stay to block orders by U.S. District Judge Thomas Griesa that prevent the country from paying interest on the debt next month without paying $1.3 billion to owners of defaulted notes.
 
Holders of the restructured debt asked the federal appeals court in New York to enter an emergency stay while they appeal Griesa’s rulings, claiming that concern about whether Argentina will default is causing the value of their bonds to drop, according to court papers provided by ASC Advisors, which handles public relations for their lawyers. The papers couldn’t be immediately confirmed with the court.
 
 
Reuters
 
Monday, November 26, 2012
 
By Helen Popper and Daniel Bases
 
BUENOS AIRES/NEW YORK, Nov 26 (Reuters) - Argentina on Monday appealed a U.S. court order to pay $1.3 billion to investors who rejected two debt restructurings tied to its 2002 sovereign debt crisis, amid fears that the country faces another default.
 
U.S. District Judge Thomas Griesa last week ordered Argentina to deposit the money before Dec. 15 to pay the "holdout" creditors, a move that could jeopardize payments to bondholders who participated in the 2005 and 2010 debt swaps.     Argentina's economy ministry said late on Monday it had filed an appeal and denounced Griesa's ruling as "an attack on sovereignty that shows ignorance of the laws passed by our Congress."
 
 
Bloomberg
 
Monday, November 26, 2012
 
By Daniel Cancel
 
Argentina called on a U.S. court to reinstate a stay through an appeals process after Judge Thomas Griesa lifted the measure as part of a ruling ordering the South American country to pay holders of defaulted debt $1.33 billion by Dec. 15.
 
Argentina said that Griesa’s reading of the pari passu clause is unfair, and that a scenario where holdouts seek equal terms as investors who accepted swaps in restructurings could be debated in Congress, according to an e-mailed statement from the Economy Ministry.
 
 
Open Democracy
 
Monday, November 26, 2012
 
By Ann Pettifor
 
Argentina is engaged in an epic legal struggle with a New York ‘vulture fund’ – Elliott Management Corporation. In the meantime Greece’s debt agony persists, with her major official creditors – the IMF, EU and ECB, clearly divided, and unable to agree on a resolution to the crisis.
 
Both ongoing sovereign debt crises remind us yet again that there is no international framework of law for the orderly management of the de facto bankruptcy of a sovereign.
 
In the absence of what would be a fair and just international insolvency law, the sovereign debtor has few choices.
 
 
Reuters
 
Monday, November 26, 2012
 
By Felix Salmon
 
Argentina is engaged in an epic legal struggle with a New York ‘vulture fund’ – Elliott Management Corporation. In the meantime Greece’s debt agony persists, with her major official creditors – the IMF, EU and ECB, clearly divided, and unable to agree on a resolution to the crisis.
 
Both ongoing sovereign debt crises remind us yet again that there is no international framework of law for the orderly management of the de facto bankruptcy of a sovereign.
 
In the absence of what would be a fair and just international insolvency law, the sovereign debtor has few choices.
 
 
ABC News
 
Monday, November 26, 2012
 
By Michael Warren
 
Argentina is refusing to budge in its billion-dollar debt showdown in New York federal court, preparing an appeal Monday that it hopes will stave off another devastating default.
 
Judge Thomas Griesa left Argentina without any wiggle room, ordering the government of President Cristina Fernandez to pay $1.3 billion into an escrow account for the so-called "vulture funds" by Dec. 15, even as it pursues its final appeals.
 
 
MercoPress
 
Monday, November 26, 2012
 
The diplomat also stated that “Argentina has been following the rules of the international financial system. We’ve been paying with no delays to all our creditors of the 2001 defaulted debt.”
 
“We will not tolerate the blackmails of NML Capital “vulture” fund, which rejected a debt restructure twice” underlined the ambassador.
 
The harsh words of the Argentine diplomat came in response to an editorial comment published by The Chicago Tribune in which the government of Cristina Fernández is accused of conducting “populist economic policies” that see “a country of such great economic promise swerving off the road to prosperity again.”
 
 
Forbes
 
Monday, November 26, 2012
 
A hedge fund owned by billionaire Paul Singer disputed the New York Fed’s opinion that a court ruling in its battle against Argentina over the world’s largest sovereign debt default could disrupt its payments system and global bond markets.  Sources close to the matter also raised doubst that a judgment against Argentina, which could push the country into technical default, would render debt restructurings useless by incentivizing creditors to hold out.
 
After Finance Minister Hernan Lorenzino characterized the court’s decision as “judicial colonialism,” Argentine authorities insisted that they refuse to pay what President Cristina Kirchner has dubbed “vulture funds,” and said they would take the case to the U.S. Supreme Court if an appeal didn’t prosper.  The hedge fund suggested Argentina might try to make payments via accounts held by Venezuelan President Hugo Chavez.
 
 
MercoPress
 
Monday, November 26, 2012
 
The following editorial motivated a strong reaction from the Argentine ambassador in Washington Jorge Argüello, despite the fact it is an objective piece based on facts and events which argues that Argentina’s populist economic policies court disaster.
 
What a shame to see a country of such great economic promise swerving off the road to prosperity again.
 
 
CNBC
 
Monday, November 26, 2012
 
Video
 
 
Financial Times
 
Sunday, November 25, 2012
 
After Argentina defaulted in 2001, most of its creditors eventually accepted a restructuring. But Elliott Associates and Aurelius Capital, the hedge funds, fought a long legal battle to be repaid in full. The government, meanwhile, has vowed it would never pay those that it calls “vulture funds”.
 
A decision by a New York court last week could force Buenos Aires to renege on this promise. Judge Thomas Griesa has ruled that equal treatment of the bondholders requires paying the holdouts in full if the restructured bonds are honoured. Unless Argentina pays back $1.3bn it owes the hedge funds, Mr Griesa says it will be illegal for it – and intermediaries such as Bank of New York Mellon – to fulfil the commitment to exchange bondholders. This may lead to a new sovereign default.
 
 
Buenos Aires Herald
 
Tuesday, November 27, 2012
 
President Cristina Fernández de Kirchner and President of Peru Ollanta Humala will meet today at the Government House in a bid to boost bilateral relations between Peru and Argentina.
 
Today's meeting -ahead of the Argentine head of state's trip to Peru on Friday to take part in a UNASUR summit- is set to take place at around midday at the central government building in downtown Buenos Aires.
 
 
Teen Ink
 
Cristina Kirchner, the actual president of Argentina, is causing the country a lot problems. She doesn’t seem to care in which direction she is taking the country, and doesn’t realize all the bad things she already has done to it. People know this, but they don’t do anything to stop her.
 
The only reason she is the president, is because her husband told her to do it. 5 years before she became president, her husband was in power. After he completed 8 years as the president, he put his wife as a candidate. He only did this so that he could control her, and have power over Argentina again. After he died, Cristina kept on running as president, only winning because she paid money to the poor people in exchange for her vote. This goes against the values of democracy. The votes should be true, honest, and based on you real choice for president, not the money they pay you.
 
 

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