November 27, 2014
Fintech Advisory fund welcomes new debt swap under Argentine law
Fintech Advisory hedge fund head David Martínez Guzmán has said the fund is willing to accept the new debt swap proposed by the Argentine government in order to “isolate (US) judge Thomas Griesa and vulture funds, and resume the chain of payment arbitrarily interrupted.”
Martínez Guzmán welcomed the Argentine plan to reopen the debt swap under Argentine legislation during an interview with Página 12 newspaper. “The solution is to switch to a local plan,” he said, supporting the government’s project to replace the bank of New York Mellon (BoNY) with local Banco Nación as trustee.
He stressed that “it is the right way (for the country to) regain its lead of business” and to “rebuild the chain of payment of restructured bonds.”
“There are many investors willing to do business under local law because Argentina’s solvency is indubitable, as is its government’s willingness to pay,” Martínez Guzmán pointed out, who owns around a billion dollars in Argentine debt bonds.
“The market wants a solution,” he said and pointed out that “there is nothing that (judge Griesa) could do before a new Argentina’s internal debt emission.” Martínez Guzmán stated that the government’s plan “would not be in breach of the pari passu clause.”
However, the investor said that “the local swap will be successful” even if bondholders decide to wait until RUFO clause expires in January, because “once order and the chain of payment have been restablished and if 85% (of bondholders) accept, the rest would be compelled to follow under the collective action clause.”
“The rest of the holdouts would agree to the exchange, Singer and Griesa would be left isolated and that would be the momento to negotiate a definitive solution,” he added.
David Martínez Guzmán has other investments in Argentina. He owns 40% of Clarín group’s Cablevisión, he is main shareholder of Telecom Argentina.