Argentina Looks to Take More Aggressive Stance with Bondholders
13 February 2016 - 03:50AM
Dow Jones News
Argentina is asking a U.S. judge to lift an injunction that is
preventing the government from borrowing in the international bond
markets, an attempt to go around holders of its defaulted debt who
rejected the country's recent settlement offer.
U.S. District Judge Thomas Griesa on Thursday ordered U.S.
bondholders to explain by Feb. 18 why he should not comply with
Argentina's request.
Argentina's request shows it is looking to take a more
aggressive stance with holdout bondholders to end a 15-year
stalemate that is keeping it from borrowing in the international
capital markets.
The government last week offered bondholders a $6.5 billion
settlement on the defaulted government debt, which is 75% of what
creditors in the U.S. court say they are owed. Argentina says at
least two U.S. bondholders have agreed to the terms, but other
larger holders haven't.
Argentina defaulted on more than $80 billion of government debt
in 2001, the largest sovereign default at the time.
Write to Julie Wernau at Julie.Wernau@wsj.com
(END) Dow Jones Newswires
February 12, 2016 11:35 ET (16:35 GMT)
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