World News: 22:08 GMT Tuesday 17th June 2014. [Yahoo Business News Feed via SPi World News]
By Daniel Bases NEW YORK (Reuters) - Argentina's prospects for finally closing out its 12-year-old default on $100 billion of debt will depend on more political and legal maneuvering, a motivated U.S. judge and the fatigue of investors, now that it has lost an epic battle with holdout creditors in the U.S. courts. Negotiating a new deal with the holdouts, who have fought to exercise their investor rights through the courts, potentially violates a provision specifically written to stop anyone getting a better deal than bondholders who participated in two prior restructurings in 2005 and 2010. "Most people are not going to do anything about it because once the issue is settled the market is likely to rally," said Varun Gosain, portfolio manager at New York-based Constellation Capital Management with investments in Argentine assets and participated in the exchanges, referring to the value of the bonds. The exchange bondholders hold about $24 billion in debt that is in jeopardy of coming under a technical default.
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