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1 Jul 2014
Argentina has 30-day grace period to avoid formal default
FXStreet (London) - Argentina remains in technical default, but a grace period means that it remains out of formal default.
Argentina has a 30-day grace period to avoid going into formal default for the second time in 13 years after failure to make bond payments.
Argentina has been locked in a legal battle with Paul Singer's NML Capital Ltd hedge fund. On Friday, US District Judge Thomas Griesa ruled that it would be illegal for Argentina to make a payment to the majority of its bondholders without also paying more than $1.5bn to the holdouts led by NMP Capital and Aurelius Capital Management.
"Argentina's professed willingness to negotiate with its creditors has proven to be just another broken promise. NML is at the table, ready to talk, but Argentina has refused to negotiate any aspect of this dispute," said Jay Newman, senior portfolio manager at Elliott Management, the holding company of NML Capital, in a statement released on Friday.
Argentina has a 30-day grace period to avoid going into formal default for the second time in 13 years after failure to make bond payments.
Argentina has been locked in a legal battle with Paul Singer's NML Capital Ltd hedge fund. On Friday, US District Judge Thomas Griesa ruled that it would be illegal for Argentina to make a payment to the majority of its bondholders without also paying more than $1.5bn to the holdouts led by NMP Capital and Aurelius Capital Management.
"Argentina's professed willingness to negotiate with its creditors has proven to be just another broken promise. NML is at the table, ready to talk, but Argentina has refused to negotiate any aspect of this dispute," said Jay Newman, senior portfolio manager at Elliott Management, the holding company of NML Capital, in a statement released on Friday.