|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Argentina

Judge Rules in Favor of “Me-Too” Bondholders in Argentina Debt Dispute
The ruling by U.S. District Judge Thomas Griesa in Manhattan is a harsh blow to Argentina’s government because it means that it now must pay $8 billion to holdout bondholders – up from an earlier total of $1.7 billion – before it can make payments to investors who agreed to steep haircuts in 2005 and 2010

NEW YORK – A U.S. federal judge has ruled that so-called “me too” bondholders also must be paid before Argentina can make payments on restructured debt.

The ruling by U.S. District Judge Thomas Griesa in Manhattan is a harsh blow to Argentina’s government because it means that it now must pay $8 billion to holdout bondholders – up from an earlier total of $1.7 billion – before it can make payments to investors who agreed to steep haircuts in 2005 and 2010.

After hearing arguments from both parties over two days, Griesa on Friday ruled that the “me too” bondholders deserve the same treatment as a group of U.S. hedge funds led by Elliott Management Corp. founder and CEO Paul Singer’s NML Capital Ltd., which won a similar ruling in Griesa’s court in 2012.

As in the earlier case, Griesa noted in his latest decision that the “me too” litigants’ bonds contain a “pari passu” (equal treatment) clause that requires Argentina to pay them before or at the same time as the exchange bondholders, whose securities are governed by U.S. law.

The Argentine government’s attorney, Carmine Boccuzzi, argued during Wednesday’s hearing that including the “me too” holdouts in the original lawsuit spearheaded by Singer would further complicate efforts to reach a settlement.

But the lawyer representing NML Capital, Robert Cohen, said Argentina had the ability to pay all of its obligations but merely lacked the willingness to do so.

Around 93 percent of Argentina’s creditors agreed to participate in two debt swaps in 2005 and 2010.

But NML and other U.S. hedge funds that bought their Argentine bonds at large discounts following Buenos Aires’ massive 2001 debt default – at the time the largest sovereign default in history – boycotted the restructuring deals.

The origins of that default, a decision adopted amid a financial meltdown and economic depression, go back to Argentina’s 1976-1983 military regime, which presided over a 465 percent expansion in public indebtedness.

 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2015 © All rights reserved