This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2016/03/01/business/dealbook/argentina-reaches-deal-with-hedge-funds-over-debt.html
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Argentina Reaches Deal With Hedge Funds Over Debt | Argentina Reaches Deal With Hedge Funds Over Debt |
| (35 minutes later) | |
| Argentina has agreed to pay $4.65 billion to four hedge funds on Monday in a deal that could put an end to a more than a decade of mudslinging and legal attacks. | Argentina has agreed to pay $4.65 billion to four hedge funds on Monday in a deal that could put an end to a more than a decade of mudslinging and legal attacks. |
| The hedge funds, which include the billionaire Paul E. Singer’s NML Capital, are the last among of group of investors that declared legal war on Argentina in the United States 12 years ago. These holdouts, so named for their refusal to partake in Argentina’s two restructurings after it defaulted on $100 billion of debt in 2001, sought billions in bond repayments and eventually succeeded in preventing Argentina from paying any of its creditors. | The hedge funds, which include the billionaire Paul E. Singer’s NML Capital, are the last among of group of investors that declared legal war on Argentina in the United States 12 years ago. These holdouts, so named for their refusal to partake in Argentina’s two restructurings after it defaulted on $100 billion of debt in 2001, sought billions in bond repayments and eventually succeeded in preventing Argentina from paying any of its creditors. |
| “This is a giant step forward in this long-running litigation,” Daniel A. Pollack, the court-appointed mediator, said on Monday. But, he added, it is “not the final step.” | “This is a giant step forward in this long-running litigation,” Daniel A. Pollack, the court-appointed mediator, said on Monday. But, he added, it is “not the final step.” |
| The settlement will resolve 85 percent of the claims of the holdouts, Mr. Pollack said. | |
| The four hedge funds, including Aurelius, a hedge fund run by Mark Brodsky, a former trader at Mr. Singer’s Elliott Management; Davidson Kempner, and Bracebridge Capital, have agreed not to try to prevent Argentina from raising new money. The deal will also depend on whether Argentina’s legislature will repeal domestic laws that prevents the government from paying holdouts. | The four hedge funds, including Aurelius, a hedge fund run by Mark Brodsky, a former trader at Mr. Singer’s Elliott Management; Davidson Kempner, and Bracebridge Capital, have agreed not to try to prevent Argentina from raising new money. The deal will also depend on whether Argentina’s legislature will repeal domestic laws that prevents the government from paying holdouts. |
| The battle between the holdouts and Argentina reached a nadir under the previous president, Cristina Fernández de Kirchner, who called the holdouts “vultures” and “financial terrorists.” | The battle between the holdouts and Argentina reached a nadir under the previous president, Cristina Fernández de Kirchner, who called the holdouts “vultures” and “financial terrorists.” |
| Pressure has been growing on the holdouts to settle with Argentina in recent weeks. Argentina’s newly elected president, Mauricio Macri, has moved fast to settle with other bondholders, striking a $1.3 billion settlement with a group of Italian investors. Argentina also offered to pay $6.5 billion to the group of six hedge fund holdouts. Two of those firms, Montreux Partners and Dart Management, accepted the proposal, which amounted to three-quarters of a $9 billion claim. | Pressure has been growing on the holdouts to settle with Argentina in recent weeks. Argentina’s newly elected president, Mauricio Macri, has moved fast to settle with other bondholders, striking a $1.3 billion settlement with a group of Italian investors. Argentina also offered to pay $6.5 billion to the group of six hedge fund holdouts. Two of those firms, Montreux Partners and Dart Management, accepted the proposal, which amounted to three-quarters of a $9 billion claim. |
| On Feb. 19, Judge Thomas Griesa of the Federal District Court in Manhattan, who has presided over the lengthy legal battle, dealt the holdouts a setback by agreeing to lift an injunction that has prevented Argentina from raising new money in bond markets or pay its creditors. | On Feb. 19, Judge Thomas Griesa of the Federal District Court in Manhattan, who has presided over the lengthy legal battle, dealt the holdouts a setback by agreeing to lift an injunction that has prevented Argentina from raising new money in bond markets or pay its creditors. |
| That ruling is based on two conditions: that Argentina repeal its domestic law, known as the “Lock law,” that prevents it from paying the holdouts and that it makes full payments to bondholders who settle with Argentina by Monday. | |
| Argentina’s Congress could take most of March to debate whether to revoke the Lock law, and a decision could be expected by the end of the month, according to Sergio Berensztein, an Argentine political analyst. | |
| In a statement on Monday, Mr. Pollack highlighted several major figures in the negotiation process, including Alfonso Prat-Gay, Argentina’s minister of economy, and Mr. Singer, who, the mediator said, was a “central figure who involved himself intensely with me over the past several weeks.” | In a statement on Monday, Mr. Pollack highlighted several major figures in the negotiation process, including Alfonso Prat-Gay, Argentina’s minister of economy, and Mr. Singer, who, the mediator said, was a “central figure who involved himself intensely with me over the past several weeks.” |
| Speaking about Argentina’s new government, Mr. Pollack added that “their course-correction for Argentina was nothing short of heroic.” | Speaking about Argentina’s new government, Mr. Pollack added that “their course-correction for Argentina was nothing short of heroic.” |