Debt Coverage:
Financial Times: “Les holdouts miserable”
Financial Times: “Argentina’s creditors face deal deadline”
Bloomberg: “New York-for-Buenos Aires Swap Theory Spreads: Argentina Credit”
Bloomberg: “Argentina Bond Clash Extended as Court Seeks Fund Plan”
Reuters: “Court demands Argentine bondholders address pay plan”
Reuters: “A Plan B for Argentina”
Wall Street Journal: “Court Orders Holdout Creditors to Respond to Argentina”
Financial Times: “Guest post: why Argentina’s behaviour must not be allowed to stand”
The New Zealand Herald: “Argentina finds creative way out of showdown with 'vulture funds'”
Conflict of Laws.Net: “French Supreme Court Upholds Argentina’s Immunity despite Waiver”
Argentine Economy:
MercoPress: “Eleven million Argentines, 26.9% of the population live in poverty conditions”
American University: “Argentina’s Economy: Endgame Scenarios” (Arturo Porzecanski)
Falklands:
MercoPress: “Falkland Islands’ referendum blasted by the Argentine embassy in Montevideo media”
Buenos Aires Herald: “'UK using Malvinas to hide economic woes,' CFK”
MercoPress: “Falklands’ referendum at the heart of a controversy in Colombia”
MercoPress: “Falklands’ lawmaker regrets South American leaders take for granted Argentina’s version of events”
The Telegraph: “Cristina Kirchner, the bully of Buenos Aires, should apologise for Argentina’s invasion of the Falklands”
Financial Times
Wednesday, April 03, 2013
By Joseph Cotterill
As the pari passu saga in New York rattles towards its end… (or is it?)
The contest of wills and/or highly-paid lawyers between Elliott and Argentina goes on elsewhere, of course.
NML Capital’s use of the pari passu clause against the Argentine government is novel — and it’s working — but so far it’s been applied only to defaulted debt on which they haven’t secured an actual judgment that Argentina must pay out. It’s more about injunctions and remedies, pioneering how holdouts can seize sovereign assets — or those assets as they pass through the hands of third parties — in pursuit of their claims.
Financial Times
Wednesday, April 03, 2013
By Jude Webber
A US appeals court has given Argentina’s holdout creditors until April 22 to respond to the country’s proposal to offer them a new debt swap instead of paying $1.33bn as a New York judge ordered last year.
Argentina unveiled its proposal in a letter to the court late on Friday and, as had been widely expected, the swap terms were virtually identical to the two debt swaps it carried out in 2005 and 2010, in which it restructured nearly 93 per cent of its defaulted debt. As such, the holdouts, led by Elliott, a US fund, were expected to reject it out of hand, as they did the previous two offers in the wake of its 2001 default on nearly $100bn.
Bloomberg
Wednesday, April 03, 2013
By Katia Porzecanski
Argentina’s refusal to improve its offer to holders of defaulted debt suing for full payment in the U.S. is deepening speculation that the nation will sever ties with the overseas bond market.
The proposal submitted on March 29 mimics the terms of Argentina’s 2005 and 2010 debt exchanges, a move that could lead to a default on the restructured notes unless the country removes them from U.S. jurisdiction. While benchmark notes due 2033 sank as much as 2.5 cents to 51.8 cents on the dollar after Argentina made the offer, they’ve since recouped all their losses as investors bet that the government will swap them into debt governed by Argentine law.
Bloomberg
Wednesday, April 03, 2013
By Bob Van Voris and Edvard Pettersson
Holders of defaulted Argentina debt, led by billionaire Paul Singer’s Elliott Management Corp., were directed by a court to respond to the South American nation’s proposal to force them to take a sharp discount on their bonds.
The U.S. Court of Appeals in New York yesterday ordered Elliot unit NML Capital Ltd. to respond to Argentina’s payment proposal by April 22. The creditors, who hold bonds that Argentina repudiated in its record $95 billion default in 2001, are seeking $1.4 billion. The order means the court is unlikely to rule before then.
Reuters
Tuesday, April 2, 2013
By Nate Raymond
(Reuters) - A appeals court on Tuesday gave holders of defaulted Argentina debt three weeks to respond to the country's proposed plan to pay them much less than the $1.33 billion they have sued to collect.
The 2nd U.S. Circuit Court of Appeals in New York directed holdout bondholders who did not participate in Argentina's two debt restructurings following its 2002 default to submit a response by April 22.
Reuters
Tuesday, April 02, 2013
By Sujata Rao
What’s Argentina’s Plan B?
President Cristina Fernandez de Kirchner has said she will sell the presidential palace in Buenos Aires, if need be, to keep paying creditors who agreed to restructure the country’s debts. But it may not come to that. Warning: this is a complicated saga with very interesting twists.
A pair of hedge fund litigants demanding $1.3 billion in payments and a New York court are making it hard for Kirchner to keep paying international bondholders. But she might contemplate asking those existing creditors to swap into Argentine law bonds, to which the writ of the New York court will not extend.
Wall Street Journal
Tuesday, April 2, 2013
By Chad Bray
A group of holdout creditors must respond by mid-April to a new proposal by Argentina to offer restructured bonds in hopes of resolving litigation that has prevented it from making payments on its previously restructured debt, a U.S. appeals court said Tuesday.
The holdout creditors, led by hedge funds Aurelius Capital Management and Elliott Management Corp. unit NML Capital Ltd., have said that Argentina was favoring investors who previously agreed to debt exchanges in 2005 and in 2010.
Financial Times
Tuesday, April 2, 2013
By Hans Humes and Diego Ferro
A decade-long battle stemming from Argentina’s epic 2001 default has reached a critical stage. Courts recently required Argentina to uphold a promise in its bond contract to rank its debts equally, following years of orchestrated repudiation. The so-called pari passu case in New York is being closely watched across the world for the possible implications it could have for future sovereign debt restructurings.
Argentina and its defenders claim that if recent US court rulings against it are upheld, then other sovereign debt disputes cannot be resolved. They argue that an unfavourable court ruling will in effect prevent countries from tackling unsustainable debt burdens in the future.
The New Zealand Herald
Monday, April 1, 2013
Argentina proposed a creative way out of its debt showdown on Friday night, describing a mix of cash and bonds that it suggested would amount to a huge profit, but not a gargantuan one, for the investors it calls "vulture funds."
The government's lawyers gave an appellate panel in New York a proposed payment plan that could take many more years to cancel US$1.44 billion ($1.72 billion) in defaulted bonds, interest and penalties left unpaid since the country's world-record 2001 default.
Conflict of Laws.Net
Tuesday, April 2, 2013
By Gilles Cuniberti
Last week, the French Supreme Court for private and criminal matters (Cour de cassation) set aside three series of enforcement measures carried out by NML Capital Ltd against the Republic of Argentina in three judgments dated 28 March 2013 (see here, here and here).
Readers will recall that NML Capital Ltd was the beneficial owner of bonds issued by Argentina in year 2000. As the relevant financial contracts contained a clause granting jurisdiction to New York courts, the creditor sued Argentina before a U.S. federal court, and obtained in 2006 a judgment for USD 284 million. In the summer 2009, NML Capital initiated enforcement proceedings in Europe.
MercoPress
Tuesday, April 2, 2013
The figures from the UCA Social Observatory are fivefold higher that those with which the administration of President Cristina Fernandez uses as reference. Likewise while last year for Indec the poverty index was down (6.5% to 5.2% or 400.000 less), for UCA from 2011 to 2012, the index soared from 21.9% to 26.9%, which means two million more poor Argentines.
Regarding indigence something similar happened because for Indec, only 1.5% of the population (660.000) is included in that category but for UCA it is 5.2% or 2.2million. And while for Indec indigence in one year was down from 1.7% to 1.5%, for UCA it climbed from 5.4% to 5.5%.
American University
Tuesday, April 02, 2013
By Arturo C. Porzecanski
The economic and financial headlines coming out of Argentina have been increasingly at odds with the norm throughout the world’s main emerging markets.
• Whereas most countries have been coping with a flood of incoming capital by soaking up excessive inflows and adding to their hoard of international reserves, and a few have even resorted to taxes or other measures to discourage capital inflows, capital has been hemorrhaging out of Argentina despite increasingly stringent controls on imports, remittances abroad, and other crossborder transactions.
• While most central banks have countenanced significant appreciation of their currencies since 2009, capital flight in Argentina has led to a major depreciation of the peso, such that in terms of dollars the currency is now worth about half its value relative to 2005 – and a mere one third its value in the black market.
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