In face it’s not a secret to anyone that, if the ruling is unfavorable to Argentina, the government will try to change the bonds that the bondholders have who entered the exchange for new bonds emitted under another jurisdiction, which could be Europe or Buenos Aires.

  Clarin
On Wall Street, they are sure the vultures will reject the offer.
Confidence that the Court of Appeals will not modify its ruling. Doubts over Bank of NY.

Wednesday, April 10, 2013

By Ana Barón

There is consensus on Wall Street. Important investment banks like JP Morgan, Bank of America, Bulltick, Credit Suisse and many others believe that the vulture funds will reject the Argentine payment offer presented last week before the Court of Appeals. There is not so much consensus, however, about what might happen afterwards.

An attorney with access to NML, the fund of Paul Singer, told Clarin that in the brief that they will present in the coming days, the holdouts not only will criticize the Argentine offer but also will again accuse Argentina of not wanting to comply with U.S. law.

“Argentine Vice President Amado Boudou made a big tactical mistake when he announced that Argentina would not abide by a ruling from the Court of Appeals that impedes paying the bondholders that entered the exchange if the holdouts aren’t paid at the same time,” the attorney told Clarin. “Boudou said that they would pay, one way or another,” those who did enter the swap. In face it’s not a secret to anyone that, if the ruling is unfavorable to Argentina, the government will try to change the bonds that the bondholders have who entered the exchange for new bonds emitted under another jurisdiction, which could be Europe or Buenos Aires.