Posts
In NYC on Friday...Buenos Aires presented a 'new' bond repayment plan...as demanded by an appeals court...that is virtually the same as an original...and rejected...2010 plan.
It would pay 2 hedge funds about 1/6th of what a judge demanded.
A USA judge had ordered Argentina to submit a plan for hedge funds that purchased old bonds at a fraction of their original costs...and are demanding full repayment of $1.33 billion.
The hedge funds...NML and Aurelius...have bitterly sought repayment for years.
One even succeeded in 2012 in putting a month long lien on a naval ship docked in Africa.
Buenos Aires has called the funds 'vultures.'
It is unclear how the judge will view the proposal.
The hedge funds issued no comment.
If the judge rejects the 'new' offer...Argentina will have to repay the hedge funds in full.
That could force Argentina to repay all bondholders...and eventually default on all debt.
Observers say...with its proposal...Buenos Aires is basically 'thumbing its nose at the court.'
http://www.bloomberg.com/news/2013-03-30/argentina-one-sixth-bond-offer-seen-as-thumbing-nose-.html
