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Dienstag, 26. Februar 2013

Latin American Herald Tribune Hedge Fund Lawsuit Against Argentina Default Spurs Caveat



Latin American Herald Tribune
 
Tuesday, February 26, 2013
 
By Camila Russo
 
BUENOS AIRES – Argentine President Cristina Fernandez de Kirchner is gaining unintended allies in her case against holdout creditors such as billionaire hedge-fund manager Paul Singer, who want to collect on the nation’s defaulted bonds.
 
Paraguay and Colombia added clauses to bond contracts last month warning a U.S. ruling that requires Argentina to repay the creditors who refused to accept 70 percent losses in settlements after the country’s 2001 default may hinder their ability to restructure debt in the future. At 13.4 percent, Argentina’s borrowing costs internationally are more than double the average in emerging markets, according to JPMorgan Chase & Co.
 
 
IHS Global Insight
 
Tuesday, February 26, 2013
 
By Laurence Allan
 
Hernán Lorenzino, Argentina's Minister of Economy, is expected to be present at the Second Circuit Court of Appeals in New York City, US, on 27 February, when that court gives a ruling on the Argentine government's long-running battle with the so called 'holdouts' or bondholders, according to reports carried in Argentine media sources today (26 February). Lorenzino's presence highlights the critical importance of the outcome of the court proceedings to the Argentine government, which is in dispute with the holdouts including NML Capital, a Cayman Islands-based company affiliated to the Elliot Management hedge fund, and Aurelius Capital Management. The court will decide if Argentina must pay USD1.3 billion to the holdouts under a decision made by the New York court in November 2012, or whether it will uphold Argentina's appeal that it has the right to pay out to bondholders who had taken part in 2005 and 2010 debt exchanges without making payments to the holdouts.
 
 
Financial Times
 
Monday, February 25, 2013
 
By Joseph Cotterill
 
It’s the week of the big hearing in the pari passu saga.
 
Argentina (plus the bondholders who agreed to be restructured between 2005 and 2010, plus Bank of New York) will try to convince the Second Circuit that it should change an order for the country to pay holdouts ratably as a remedy for breaching their bond contract. ‘Ratable’ is a term with a controversial history in sovereign debt but it basically means paying each creditor on the same basis, not paying one after the other.
 
Well, speaking of ratable payment… we’d just like to point something out from the Belize debt restructuring, which has been going on while the pari passu saga has trundled through courts:
 
 
DealB%k
 
Monday, February 25, 2013
 
By Peter Eavis
 
A fierce battle between the government of Argentina and hedge funds and other investors led by a group of hedge funds has already led to the seizure of a naval ship and dragged in the United States Treasury. Now a federal appeals court is hearing the dispute, and how it rules could have a major impact on world debt markets.
 
The investors — including the hedge fund tycoon Paul E. Singer — sued Argentina seeking payment for $1.3 billion relating to bonds that the country defaulted on in 2001. On Wednesday, the case comes before the United States Court of Appeals for the Second Circuit, which has already sided with the hedge funds on their main arguments.
 
 
The Wall Street Journal
 
Monday, February 25, 2013
 
By Ken Parks
 
BUENOS AIRES--Argentina's benchmark government bonds rose, while stocks finished lower Monday, as uncertainty over the results of Italy's general election weighed on equities.
 
U.S. stock markets, which influence Argentina, fell as investors feared Italy might abandon austerity measures aimed at restoring confidence in its economy and the Italian government's ability to pay public-sector debt.
 

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