Deja Vu All Over Again For Argentine Debt Deal Holdouts

Jan 6 2015 | 11:28am ET

Holdouts from Argentina's settlement with bondholders after its 2001 default may be feeling a sense of deja vu.

Argentine economy minister Axel Kicillof has made an informal offer to the holdouts—including Paul Singer's Elliott Management—that looks a lot like the offer they've repeatedly rejected.

According to The New York Times, the offer came after the December 31st expiration of a clause that had prohibited Argentina from offering the holdouts better terms than those offered in its 2005 and 2010 debt restructuring deals.

Kicillof told a news website over the weekend that Argentina is still asking the holdouts to accept a 65% haircut on the bond principal, “as if the exchange were taking place in 2005.” The only sweetener would be interest accrued since 2005 on the discounted bonds.

A source close to the holdouts told the Times Kicilloff's remarks—about which there appears to have been no formal discussion—were “simply the same take-it-or-leave-it offer from 2005 and demonstrate that he is not serious about negotiating a resolution.”


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