As the talks for the settlement over defaulted bonds in Argentina continues, a group of creditors is convincing Judge Thomas Griesa to reject the country's plea to remove orders that blocks it from progressing its restructured debts. They believed that it will only slow down the process of current settlement negotiations.
According to bondholders including NML Capital Ltd, Elliot Management, they claimed that they were "encouraged" by Argentina's President and it was his desire to resolve the litigation. They stated that talks regarding the settlement just started on February 5 when Argentina made the proposal to $6.5 billion to have the dispute settled. This resulted to the country's plea to leave injunctions imposed in litigation not warranted.
The injunctions required the country to pay their creditors including Aurelius Capital Management LP as well as NML. It was from the $100 billion default in 2002 that was owed to bondholders that joined in 2 restructurings.
From the statement of NML and Aurelius lawyers, cited from Reuters, giving Argentina the chance to once again violate the contractual rights of plaintiffs would only turn over the talks that just started to go deeper. This time, it would put new and unwanted litigation at risk. Although the arguments have surfaced, the Thursday's brief still gave hint that the major creditors are willing to meet a deal.
From the framework of the February 5 offer, Argentina had made a settlement with Capital Markets Financial Services. This was made clear by Daniel Pollack on Thursday on his statement.
As an update, two of the six leading bondholders in litigation have already accepted the proposal. These bondholders are Kenneth Dart's EM Ltd and Montreux Partners LP. The country agreed to settle more than $1.1 billion, stated by Yahoo.
Straight from Brasilia, Finance Minister Alfonso Prat-Gay mentioned that negotiations are still on progress. He added that he is confident the country truly wants to settle this financial issue "that has left us at the margin of the world."
Last week, Argentina asked the U.S. Judge to empty the injunctions. This is after it revealed the settlement offer which shows a 27.5% to about 30% percent discount for creditors who filled the $9 billion claims. These creditors were the ones who declined the country's debt restructuring.
Basing from court papers, bondholders, NML and Aurelius stated that vacating the injunctions was not mentioned, citing that there is still 86% of the plaintiffs that needs to be settled.
The approval of the proposed settlement is still under the condition of Argentine Congress.
