August 22, 2014
Argentina's lawyers head new negotiation attempt with NY Judge Griesa
Lawyers representing Argentina in the United States in a 1.5 billion dollar dispute that risks sending the South American country into a sovereign debt default, were expected to meet New York appeals Judge Thomas Griesa this morning in a new negotiation attempt.
The Cleary Gotlieb Steen & Hamilton (CGS&H) firm is in charge of sponsoring the South American nation in the US.
“If Argentina is really in a financial condition that can not pay all its obligations, what would someone in good faith do? Come to the court and negotiate,” NY judge Griesa had said earlier this month opening a door for talks and a possible wayout to a conflict that could cost Argentina a “technical default" as President Cristina Fernández de Kirchner personally said in her Monday's national address, a few hours after the decision the the US Supreme Court to reject Argentina’s appeal in its bond fight against holdout creditors.
Argentina position is that the ruling is grossly unfair to creditors who got about 30 cents on the dollar in the swaps which those vulture funds now suing the country over its defaulted bonds more than a decade ago did not accept.
Last year, Judge Thomas Griesa ruled that Argentina violated the "pari passu" bond provision requiring it to treat all creditors equally when it paid investors who accepted the debt swaps while refusing to pay the holdouts. He said they should all be paid simultaneously.
The ruling favored plaintiffs including Elliott affiliate NML Capital Ltd and the Aurelius Capital Management funds, who had sued over an estimated $1.33 billion in defaulted bonds.
Argentina's lawyers say the ruling would be grossly unfair to creditors who got about 30 cents on the dollar in the swaps.