July 30, 2014
Holdout creditor says Argentina not negotiating
The Elliott Management Corp representative emerged from five hours of meetings with a court-appointed mediator today saying the government still refuses to have a negotiation 12 years after its historic default.
"Argentina is still refusing to negotiate with its creditors, either directly or indirectly, about any aspect of this dispute, and we have not heard that it has any plans to change course," Jay Newman, portfolio manager at lead holdout creditor firm, Elliott Management Corp, told reporters through a company spokesman.
"Simply put, we have not seen any indication that Argentina is serious about even beginning a negotiation," Newman said.
Argentina defaulted on roughly $100 billion in sovereign debt in 2002, with the majority of investors accepting terms that are generally believed to be among the worst in recent memory. Holdout creditors have sued and won a court-ordered judgment of $1.33 billion plus accrued interest.
Elliott and Aurelius Capital Management, are two hedge funds that specialize in buying up deeply discounted or distressed debt and negotiating profitable settlements, often through the use of the courts.