Such an offer would be a way for Argentina to resolve a lawsuit that could force it to choose between defaulting on its current bonds or paying hedge funds the more than $1.33 billion they have been awarded by U.S. courts, something President Cristina Kirchner has sworn never to do.

Wall Street Journal

Creditor Sees Novel Solution for Argentine Bond Standoff

 

Thursday, November 7, 2013

 

By Shane Romig

 

BUENOS AIRES—With Argentina's bondholders increasingly worried that an adverse court ruling in the U.S. might lead to a sovereign default, one creditor is proposing a novel solution: Investors should dig into their own pockets and pay the hedge funds that are suing to collect on defaulted Argentine debt.

 

Such an offer would be a way for Argentina to resolve a lawsuit that could force it to choose between defaulting on its current bonds or paying hedge funds the more than $1.33 billion they have been awarded by U.S. courts, something President Cristina Kirchner has sworn never to do.