• ‘Some progress’ made in latest Argentina debt talks

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    NEW YORK CITY: Talks between Argentina and “holdout” bondholders saw progress on Wednesday (Thursday in Manila), an official said on day three of a fresh effort to end a debt battle rooted in the country’s $100 billion default in 2001.

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    “Some progress was made today,” said court-appointed mediator Daniel Pollack, a lawyer, who is presiding over the settlement talks in New York.

    “Discussions will continue tomorrow.”

    Argentina defaulted on about $100 billion in debt in 2001. By 2010, it had restructured about 93 percent of that through bond swaps with creditors, who accepted large write-offs of the value of their bonds.

    But the rest of the bondholders held out for full payment.

    The New York talks cover some $9 billion in holdout claims, including the $1.75 billion of two hedge funds, NML Capital and Aurelius Capital Management.

    In 2012, a New York court backed the claim for 100 percent payouts sought by the two hedge funds.

    But then-president Cristina Kirchner refused to negotiate, branding them “vultures” because they bought up Argentine debt cheaply around the time of the default and then refused to take part in the restructuring.

    AFP

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