July 24, 2014
Italian bondholders 'willing to collect anywhere'
Lawyer Tullio Zembo said Italians holding Argentina’s restructured debt bonds “are willing to collect anywhere” although he considered the current legal situation that has raised default fears in the South American country “extremely difficult.”
“The first thing we are looking at now is the possibility to collect on June 30. A pretty much difficult situation but that would keep the debt payment status quo, which will satisfy us,” Zembo said in an interview with a radio show today as he pointed out that the ruling by a New York court lifting yesterday the stay that shielded the country from having to pay vulture funds does not “respect the parties” involved in Argentina’s debt restructuring process.
According to the legal representative of Italian bondholders, it is “unfair” that Argentina “had to pay to vulture funds first so that it can pay bondholders that entered the debt swaps later.”
Zembo added it was also “unfair” Argentine funds in New York were “seized” since Buenos Aires complies with its payment in the US “religiously,” “respecting the conditions” creditors agreed on after accepting the 2005 and 2010 debt swaps – which vulture funds, now battling the country in a 1.3 billion dollar dispute, rejected.
“We are willing to collect anywhere. We have to see if that is possible,” the lawyer explained. “We can not believe to be living this situation. It is an unfair sentence.”
Zembo’s comments come as rumors indicate the government plans to promote a jurisdiction swap following Monday’s decision by the US Supreme Court to reject to hear Argentina’s case against vulture funds.