September 17, 2014
Italian bondholders say banks deal would trigger RUFO clause
The Italian bondholders' legal representative Tullio Zembo said that the agreement private banks and holdouts are currently working on would trigger the Rights Upon Future Offers (RUFO) clause.
“I do not understand what is the plan of the banks, because this would trigger the RUFO [clause]. The Economy Minister [Axel Kicillof] said so yesterday: 'please, do not help us because it makes the situation worse',” Zembo said in a radio interview.
The representative of restructured italian bondholders said that an agreement with private agents would trigger the clause just as a deal between the government and the holdouts would. “They need to forget about any talks until January 2015,” he said referring to when the clause expires.
“The drama of a default is when the debtor is on its knees and cannot pay, that would be a problem,” Zembo added in a more optimistic approach, saying that is not Argentina’s situation at the moment.