Debt Coverage:
Buenos Aires Herald: “CFK takes on the wrong judge”
MercoPress: “Cristina Fernandez described Argentina as the ‘counter model’ of IMF and the world’s masters”
Financial Times: “Buenos Aires needs to respect global treaty obligations”
Financial Times: “Court shows up Argentine foolishness in default”
Bloomberg: “Argentina Wins Delay of Order Forcing Bond Payment”
The Wall Street Journal: “Good day for Argentine government in battle with holdouts”
The Wall Street Journal: “Appeals court ruling gives Argentina breathing room on default”
AFP: “US court sets stay on Argentina debt payment”
ABC News: “NY Appeals Court Stays Argentina Debt Ruling”
Bloomberg Businessweek: “Argentina Wins Delay of Order Forcing Bond Payment”
Financial Times: “Argentina: no default for now”
MercoPress: “Argentina saved from a ‘technical default;’ court case continues February 27”
Quartz: “Argentina won’t be defaulting this year, after all”
Business Law News: “Could Argentina’s Bond Dispute Be Headed to the U.S. Supreme Court?”
The Wall Street Journal: “With Argentina default called ‘probable,’ pressure builds on Kirchner”
The Wall Street Journal: “Argentina’s President Kirchner Pledges to Pay Restructured Debt Holders”
Financial Times: “Stayin’ alive, Argentine edition”
Business Insider: “How the Ruling on Argentina’s Sovereign Debt could Seriously Mess Things Up for Greece”
Business Insider: “An Appeals Court Just Granted Argentina The Right To Fi ght Hedge Fund Managers Another Day”
Reason.com: “Argentina May Abandon International Court, Treaties Over Debt Rulings”
Financial Times: “Argentina debt repayment order frozen”
Financial Times: “Argentina vs vultures: 4 scenarios”
Value Walk: “Argentina Versus Elliott Management Saga Continues”
Reuters: “A rare (and temporary) pari passu victory for Argentina” (FELIX SALMON)
JEFSA:
USA Today: “Rep. Connie Mack pushes bill benefiting big donor”
Buenos Aires Herald
Thursday, November 29, 2012
By James Neilson
By angering Griesa, Cristina pushed country toward default
When the US election campaign was approaching its end, psephologists started talking about the importance of the likeability factor; they attributed Romney’s apparent late surge to people assuming he was a less unpleasant character than they had been led to believe. In Argentina, personal feelings about Cristina have played an even bigger role. It was thanks in large measure to the widespread desire to be nice to her after her husband’s sudden demise that two years ago her image immediately recovered its lost lustre and went on to shine so brightly that last October she became by far the most powerful woman the country has ever known.
Unfortunately for everyone, herself included, Cristina let that remarkable triumph go to her head. Instead of making good use of the political capital she had been given, she frittered it away until there was little left. Within a year, her approval rating was back where it had been in mid-2008 when she was waging a bizarre rhetorical war against “coup-mongering”, “militaristic” and “selfish” farmers, many of whom barely managed to scrape together a humble living. Her conviction that in the last analysis the only thing that mattered was her personal ability to communicate with the people has hurt her greatly, as has her self-indulgent willingness to surround herself with an unimpressive assortment of family members, relatively youthful ideologues, servile cronies and notorious opportunists.
MercoPress
Thursday, November 29, 2012
“We constitute the counter model of a world where the financial capital has become king and master and wants to punish us” stressed the president addressing the Argentine Industrial Union, UIA, annual conference which was held in Los Cardales, province of Buenos Aires and had as a special guest and speaker Brazilian president Dilma Rousseff.
“It’s unconceivable” that a court of New York should have ruled “against a country which restructured 93% of its sovereign debt and has been paying regularly. We have been paying on date since 2005 to the last cent with resources of our own and we'll keep on paying to honour our country's obligations”.
Financial Times
Thursday, November 29, 2012
Sir, Mario Blejer is understandably defending the republic of Argentina in light of his role as former governor of its central bank, but he’s absolutely wrong when he states that Argentina reached “restructuring agreements after gruelling negotiations”. Argentina never negotiated the terms of the offers and the “successful restructurings of 2005 and 2010” were unilaterally imposed by the so-called ley cerrojo and the verbal threats posed worldwide by many Argentine high government representatives who in time repeated that “those who will not tender in the offers will hold in their hands not bonds, but rubbish”.
Financial Times
Thursday, November 29, 2012
Sir, In his Comment article on the decision by a New York court on the dispute between bondholders who refused to accept the restructuring terms and the Argentine government (“Argentina shows that default can be indispensable”, November 26), Mario Blejer acknowledges the controversial manner in which Argentina implemented the decision to default on its sovereign debt in 2002, only to brush it aside and focus on what he views as the real issue at stake – namely, the implications of the ruling for future (and necessary) debt restructuring operations.
Yet it is precisely the manner in which Argentina went about the default and the subsequent restructuring that is at stake here. The ruling does not, as he suggests, necessarily jeopardise future restructuring operations. It does jeopardise unilateral decisions such as the one taken by Argentina and the “take-it-or-leave-it” approach the government took in its dealings with bondholders, widely celebrated in the country as if it was a victory in a World Cup football match.
Bloomberg
Thursday, November 29, 2012
By Bob Van Voris & Daniel Cancel
Argentina won a delay of U.S. court orders that would have required paying holders of defaulted bonds next month when it makes about $3 billion in scheduled payments on its restructured debt.
A federal appeals court in New York yesterday postponed the effect of the rulings, issued by U.S. District Judge Thomas Griesa, pending a further order of the court. The court, which is considering Argentina’s appeal, said it will handle the case on an expedited basis, setting Feb. 27 for oral argument.
The Wall Street Journal
Thursday, November 29, 2012
By Laurence Allan
Pressure on the Argentine government abated somewhat yesterday (28 November) as it got good news on two separate fronts in its ongoing dispute with the so-called "holdouts" bond investors who were not included in Argentine sovereign debt restructures in 2005 and 2010. First, and most importantly, a US court temporarily put a halt to a 21 November court ruling that Argentina must pay the holdouts USD1.3billion by 15 December (see Argentina: 28 November 2012: ). The New York Appeals Court effectively suspended the 21 November ruling until the end of February 2013, giving the Argentine government some breathing space and time to develop its strategy for dealing with the ongoing pressure being exercised by the holdouts. This pressure has also extended to the African judiciary, where an Argentine navy training ship is currently impounded in the Ghanaian port of Tema as a consequence of legal action taken in local courts by one of the holdouts, NML Capital, in early October.
The Wall Street Journal
Thursday, November 29, 2012
A US court has granted an emergency stay on Argentina's looming payment to holdout creditors, effectively giving the country a reprieve from a technical default.
On Wednesday evening (Nov 28), the second circuit court of appeals overturned a judge's order forcing Argentina to put into an escrow account by mid-December the US$1.33bn it owes to holdouts who rejected the restructuring deals that followed its 2001 default on nearly US$100bn.
The decision postpones for now the risk of a default on the some US$20bn that Argentina owes to exchange creditors who did agree to the haircut.
AFP
Thursday, November 29, 2012
NEW YORK: A New York appeals court placed a stay on a lower court’s order that Argentina must repay $1.3 billion to holders of long-defaulted bonds.
The Second Circuit Court of Appeals on Wednesday granted Buenos Aires’ rush request to put a hold on a November 21 ruling, which ordered the country to make good on bonds held by US hedge funds within weeks or fall in default on all its debt.
The court accepted to hear Argentina’s appeal, again putting off a reckoning over the debt that fell into arrears 11 years ago.
Argentina defaulted on some $100 billion in debt in 2001, and has since restructured its debt twice.
ABC News
Thursday, November 29, 2012
By Larry Neumeister and Michael Warren
Argentina got some breathing room Wednesday in its billion-dollar debt showdown as an appeals court indefinitely suspended a federal judge's ruling that threatened to push the country into default.
The two-paragraph appellate court order sets a Feb. 27 date for oral arguments in the case, averting a Dec. 15 deadline for a $1.3 billion payment that Argentina has refused to make despite losing its case against NML Capital Ltd., an investment fund that specializes in suing over unpaid sovereign debts.
Bloomberg
Thursday, November 29, 2012
By Bob Van Voris and Daniel Cancel
Argentina won a delay of U.S. court orders that would have required paying holders of defaulted bonds next month when it makes about $3 billion in scheduled payments on its restructured debt.
A federal appeals court in New York yesterday postponed the effect of the rulings, issued by U.S. District Judge Thomas Griesa, pending a further order of the court. The court, which is considering Argentina’s appeal, said it will handle the case on an expedited basis, setting Feb. 27 for oral argument.
Financial Times
Thursday, November 29, 2012
By Jude Webber
So the stay stays. Holdouts-1, Argentina -1.
The US Second Circuit Court of Appeals has frozen New York Judge Thomas Griesa’s order, stopping Argentina from having to pay $1.3bn into an escrow account by December 15.
That removes an immediate risk of default and pushes a definitive ruling on this thorny issue back to after a February 27 hearing. If Judge Griesa’s November 21 ruling was a victory for Elliott Associates and the “holdouts”, the appeals court stay order equalised for Argentina.
MercoPress
Thursday, November 29, 2012
The federal appeals court postponed Judge Thomas Griesa's ruling “pending further order” and set February 27th as the day in which Argentina will be able to present its case against the judge's orders.
The measure lets the Argentine government face a bond payment of 3.3 billion dollars without any risk to holders of its restructured debt.
The appeals court has put off any decision until well into 2013 on whether or not Argentina will have to pay so-called holdout investors who did not participate in the 2005 and 2010 debt restructurings
Quartz
Thursday, November 29, 2012
By Tim Fernholz
Just when the fight over debt repayment between US vulture funds (or hold-out creditors, if you want to be less dramatic) and Argentina had reached a fever pitch, the US Court of Appeals has stepped in to settle things down—at least until February of next year.
What just happened?
Argentina needs to pay $3 billion to its recognized bondholders—those who after Argentina’s 2001 debt default agreed to take “haircuts”, i.e., get back only part of the money they were owed—by Dec. 15. A separate group of creditors, the hold-outs, who refused the haircuts and have been fighting Argentina for full repayment, obtained a controversial legal ruling from federal judge Thomas Griesa earlier this month. (These hold-out creditors are the people who seized the Argentinian navy’s training yacht, theLibertad, in Ghana in September.) The ruling forces the country to pay all its American creditors if it pays any of them, and with the hold-outs, that’s an extra $1.3 billion due on Dec. 15. Argentina refused to pay the hold-outs, and so a new default on all of its obligations loomed. The country requested a stay on the ruling, and today the US Second Court of Appeals obliged, giving everybody until Feb. 27 to prepare for a new hearing, ahead of the country’s next payment deadline in March. That means current bondholders can get paid, while the hold-outs continue to stew.
Business Law News
Thursday, November 29, 2012
By Donald Scarinci
Argentina’s legal dispute over defaulted sovereign bonds could be headed to this country’s highest court. Although the Second Circuit Court of Appeals has ruled that the country cannot treat bondholders who accepted discounted debt swaps differently than holdouts, Economy Minister Hernan Lorenzino has vowed to take the case all the way to the U.S. Supreme Court.
The dispute can be traced back to $100 billion in sovereign debt issued by the country in the 1990s. After defaulting, Argentina restructured the debt in 2005 and 2010, with bondholders receiving 25 and 29 cents on the dollar. Several hedge funds, including Elliott Management and Aurelius Capital Management, held out and are now challenging Argentina in the U.S. court system. Although the funds, deemed “vultures” by Argentina, have been successful in U.S. courts, they have not yet collected any money.
The Wall Street Journal
Wednesday, November 28, 2012
As a potential default looms, what will Cristina do?
Fitch Ratings on Tuesday cut its rating on Argentina deeper into junk-territory, saying a default by the country “is probable” as a recent court ruling ordering the country to pay $1.3 billion to a group of plaintiffs raised the possibility Argentina won’t service restructured debt securities in a timely manner.
The ruling by a U.S. District Court judge prevents Argentina from paying holdout investors – or those who have swapped defaulted debt for new securities – unless it also pays investors who are suing to be repaid in full. The court ordered the Argentina to set aside $1.3 billion by Dec. 15 for the holdout investors before it pays $3 billion to restructured-bond owners.
The Wall Street Journal
Wednesday, November 28, 2012
By Ken Parks
BUENOS AIRES--Argentina's government will continue to pay creditors who participated in debt restructurings that saw investors swap defaulted sovereign bonds for new bonds, President Cristina Kirchner said Wednesday.
A recent U.S. court ruling in favor of investors who didn't participate in the debt exchanges and are suing for repayment could jeopardize Argentina's ability to make bond payments next month.
"Without accessing capital markets, we have been punctually paying since 2005 with our own resources and we are going to continue to do so because we are going to honor our obligations as corresponds to a country that has recovered its self esteem," Mrs. Kirchner said in a televised speech during an industrial convention.
Financial Times
Wednesday, November 28, 2012
By Joseph Cotterill
Looks like those emergency bondholder briefs had some effect on the Second Circuit…
IT IS HEREBY ORDERED that the motion by the Exchange Bondholder Group for leave to intervene as interested non-parties for the purpose of appealing orders entered by the district court on 11/21/12 and for the purpose of seeking a stay pending appeal is GRANTED.
And:
It is hereby ORDERED that the November 21, 2012 orders of the district court entered in relation to this matter are all stayed pending further order of this Court.
Business Insider
Wednesday, November 28, 2012
By Linette Lopez
Nouriel Roubini has an interesting paper out on how New York Judge Thomas Griesa's ruling on Argentina's sovereign debt payments could impact the entire world, especially Greece.
If you're just tuning in, Argentina has all but lost a lawsuit against it spearheaded by hedge fund billionaire Paul Singer. Singer bought Argentine bonds in 2001 when the country's economy collapsed and he wants all his money for them.
Business Insider
Wednesday, November 28, 2012
By Linette Lopez
They said it couldn't be done (or that it was highly unlikely).
But an Appeals Court has granted the group of bond holders that restructured Argentine debt (exchange bond holders) the right to challenge Judge Thomas Griesa's ruling that Argentina must pay bond holders that didn't restructure, Bloomberg reports.
Wednesday, November 28, 2012
Argentina faces 42 claims at the World Bank’s ICSID in which the plaintiffs are demanding compensations for almost 65 billion dollars, revealed Eduardo Barcesat legal advisor to the Argentine Treasury and one of several lawyers who has defended the country in those litigations.
Among the 42 claims are five in which the International Centre for Settlement of Investment Disputes, ICSID, the arbitration tribunal from the World Bank has ruled against Argentina, but the country has not complied.
Financial Times
Wednesday, November 28, 2012
By Jude Webber
A US appeals court has put on hold a New York judge’s order for Argentina to pay $1.3bn into escrow for holders of its defaulted debt by December 15, quelling fears of an imminent default.
The Second Circuit Court of Appeals granted the stay and set a hearing for February 27. There was no immediate reaction from the Argentine government.
Last week, Judge Thomas Griesa of New York ordered Buenos Aires to make the escrow payment at the same time as it is due to pay more than $3bn to holders of restructured debt.
Financial Times
Wednesday, November 28, 2012
By Jude Webber
Argentina hopes the Second Circuit Court of Appeals could rule as early as this week on its emergency motion seeking the reimposition of an injunction that would stop Argentina from having to pay $1.3bn into an escrow account by December 15 pending appeal.
To recap briefly: the appeals court on October 26 upheld an earlier ruling by New York Judge Thomas Griesa on the interpretation of the pari passu (“equal footing”) clause contained in the bonds on which it defaulted in 2001, but asked him to clarify the payment mechanism and the impact on third parties.
Value Walk
Wednesday, November 28, 2012
By Tabinda Hussain
Argentina’s debt ‘situation’ has been a hot topic in the news. Recently the country showed signs of reaching some middle ground with its debt holders rather than defaulting on it. The Manhattan court has ordered Argentina to put $1.3 billion in an escrow account and pay off the creditors that include US hedge funds.
For the sake of background, Argentina has been embroiled in a legal standoff with a bunch of hedge funds, sometimes dubbed as ‘vultures funds’, that refused to take part in the previous debt restructuring and have held out on $24 billion in bonds. In 2001, the country was at the brink of defaulting on $100 billion in foreign debt. About 93 percent of the creditors agreed to punitive restructurings while the rest of the bondholders including, Elliott Management, decided to battle it out and the case has been running in court for several years now.
USA Today
Thursday, November 29, 2012
5:21AM EST November 29. 2012 - Rep. Connie Mack has about a month left in his Congressional tenure. But before he leaves, the Florida Republican has scheduled a vote Thursday in the lame-duck session on a bill that would benefit a New York mogul whose firm was one of the biggest financial supporters of Mack's failed Senate campaign and the re-election campaign of his wife, Rep. Mary Bono Mack.
The "Judgment Evading Foreign States Accountability Act" is a bill that Mack, chairman of a House Foreign Affairs subcommittee, has proposed to force Argentina to pay U.S. investors more than $3.5 billion worth of principal and interest. Argentina sold the bonds to raise capital and then defaulted on them in 2001. The bill bars defaulting nations from U.S. capital markets and requires the U.S. government to take default status into account when providing foreign aid. It would be the first bill the chairman has moved through the subcommittee this year.
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