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November 26, 2014
Tuesday, June 24, 2014

'Vulture funds' want Argentine stay plea rejected by Griesa

Hedge fund NML Capital have dismissed the Argentine government's request to reestablish a stay on payments to the so-called 'vulture funds', and called on New York judge Thomas Griesa to reject the plea.

The last word, however, will be had by the judge, who will rule on the petition tabled yesterday by the nation.

"If as July 30 approaches the parties have made good progress but more time is needed, and Argentina has not taken action to evade the Amended February 23 orders, Argentina and the Plaintiffs will both have a strong motivation to work out a consensual accommodation, on mutually agreeable terms," Robert Cohen of Dechert, lead counsel to the holdouts, said in the letter to Griesa.

Cohen went on to say this would allow the settlement process to continue, allow Argentina to make the payment to exchange bondholders within the grace period and give his clients protections and compensation for the risk that the settlement effort fails after Argentina makes its payment.

The holdout investors, who won a landmark battle with the Argentine government in the US Supreme Court last week, believe that the nation has a "grace period" of 30 days after the June 30 deadline for honouring payments to bondholders who restructured debt.

The attorneys however, did not rule out the possibility of extending the period if the parties make progress in negotiations.

"If July 30 comes around and decent progress has been made but more time is needed, and if Argentina does not take measures to dodge its responsibilities... then there would be enough motive to continue working on a mutually-agreed deal," the letter affirmed.

If Griesa re-enforces the stay, the government will be able to pay 900 million dollars to creditors who participated in the debt swaps of 2005 and 2010, without risking an embargo on the funds by the New York justice system in line with initial rulings in the case.
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Tags:  Vulture funds  Argentina  Supreme Court  Griesa  stay  





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