Argentina Talks To Resume On Eve Of Default

Jul 28 2014 | 12:24pm ET

Argentina will make a final stab at avoiding a default on Wednesday with a last-ditch meeting with a court-appointed mediator tomorrow.

The country has until July 30 to pay hedge-fund holdouts from its last default years ago or to win a stay of the court-order requiring that payment. Its negotiators left New York on Friday without a deal, rather than negotiating “continuously” over the weekend and today, as U.S. District Judge Thomas Griesa, who is presiding over the case, has urged.

Aregentina’s representatives “left New York City on Friday evening to consult with their government in Buenos Aires,” the mediator, Daniel Pollack, said.

Griesa’s rulings bar Argentina from paying its restructured debt without also paying the holdouts—led by Elliott Management and Aurelius Capital Management—$1.5 billion. Argentina has said that doing so will open it up to more than $100 billion in claims from holders of that exchanged debt, who accepted roughly 30 cents on the dollar.

Argentina has refused to meet with the hedge funds face-to-face, and have said that a stay is necessary to negotiate a global settlement including all creditors. Griesa has twice this month rejected the country’s request for more time. Today, Cabinet Chief Jorge Capitanich insisted once again that “all negotiations related to an extremely complex issue like this one takes time.”

Elliott and Aurelius have shot back that Argentina has wasted years without talking to them and has shown no sign that it is interested in doing so. The two have said that a deal could be reached quickly if Argentina engaged in face-to-face negotiations.

The delegation to tomorrow’s meeting will include Finance Secretary Pablo Lopez, Capitanich said.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.