http://finance.ninemsn.com.au/newsbusiness/aap/8894002/hedge-fund-brands-argentina-outlaws-over-debt-payment-shift

“Argentina’s leaders have literally chosen to be outlaws. They have chronically flouted US court orders, lied to our courts, and proclaimed utter disdain for our courts,” Aurelius Capital Management said.

On Wednesday Buenos Aires revealed a plan to shift interest payments to holders of the country’s restructured bonds to an Argentine bank processor rather than the Bank of New York Mellon, to shirt the freeze a New York judge put on BNY Mellon’s processing those payments.

A ruling by the judge, Thomas Griesa, that Argentina must pay in full the hedge funds for their bonds at the same time it pays interest to restructured bond holders, and the subsequent freeze on the bank, forced the country into default at the end of July.

That came even though Argentina had placed $539 million in a BNY Mellon account to make a scheduled interest payment to creditors.

Argentina has refused to pay the hedge funds, which refused to join the overwhelming majority of creditors in the 2005 and 2010 debt restructurings.

But Griesa has consistently sided with the hedge funds in their US court fight to be paid, and placed the freeze on BNY Mellon in order for force Argentina to comply with his judgements.

Aurelius, which together with NML Capital holds some $1.3 billion worth of bonds which Argentina defaulted on in 2001, said the move Wednesday amounts to a violation of Griesa’s order, and said it would further hurt the country’s economy.

Argentine leaders “are now ‘doubling down’ on an illicit and failed approach,” it said.

http://en.wikipedia.org/wiki/Aurelius_Capital_Management

Aurelius Capital Management is a US hedge fund. The company is run by Mark Brodsky, a lawyer formerly employed by Elliott Associates.

As of October 2013, Aurelius is attempting to force the government of Argentina to pay $1.3bn following the 2010 Argentinan default on debt.

Aurelius has been involved in debt restructuring of Dubai World and Tribune Co; and, in October 2013, The Co-operative Bank.

http://www.aurelius-capital.com/

***

http://www.bbc.com/news/business-28891208

Argentina’s plan to exit its debt default by asking investors holding defaulted bonds to swap them for new locally issued debt has been ruled “illegal” by a US court.

New York Judge Thomas Griesa said the plan was “lawless”.

However, he stopped short of finding the country in contempt of court.

Argentina was trying to get around an earlier court ruling banning it from paying interest to investors who had accepted restructured bonds.

Mr Griesa ruled in July that the country must first pay the hedge funds holding out for full payment on the bonds on which it defaulted in 2001.

“I want to be very clear, this proposal is a violation of the current orders of this court… it is illegal and the court directs that it cannot be carried out,” Mr Griesa said on Thursday.

The hedge funds, which bought Argentina’s bonds at a big discount after its economic meltdown and previous default in 2001-02, are owed an estimated $1.3bn (£766m).

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some very powerful courts are working in favour of massive hedge funds and kicking the shit out of argentina..sure they owe some money..who the fuck doesnt ? its all pixels anyway..note the aurelius group who were also involved in dubai world..have a look at their home page and tell me what you see..

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Posted in Argentina, USA, World Finances, World News

Tags: argentina, Aurelius Capital Management