Breaking News

Standard & Poor’s Said Argentina Defaulted
Download PDF

standard and poors

Standard & Poor’s has found that Argentina defaulted after it could not make an interest payment of $539 million due on its discount bonds, according to The New York Times.

The action from Standard & Poor’s occurred on Wednesday and hedge funds in New York tried to reach a last-minute agreement on the debt for the country. There were five hours of mediated  talks on Wednesday, but neither side even came close to an agreement.

  
What
Where


Daniel A. Pollack is the court-appointed mediator to the talks. Pollack said, “Unfortunately, no agreement was reached and the Republic of Argentina will imminently be in default.”

“Default is not a mere “technical” condition, but rather a real and painful event that will hurt real people: these include all ordinary Argentine citizens, the exchange bondholders  (who will not receive their interest ) and the holdouts ( who will not receive payment of the judgments they obtained in court). The full consequences of default are not predictable, but they certainly are not positive.”

Argentina’s rating on its debt was lowered previously to “selective default” by Standard & Poor’s, who claimed that the country had a grace period of 30 days following the scheduled interest payment due date of June 30 to make the payment on the interest.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The fight goes back to 2001 when Argentina defaulted on tens of billions of dollars of bonds. Later on, the country exchanged the bonds for discounted ones with the majority of its shareholders. A small portion of the shareholders did not accept the new bonds, including Paul Singer’s Elliott Management.

The Argentina government was sued by NML Capital, an affiliate of Elliott. They asked for interest and full payment.



The case went through the United States court system until 2012, when a judge in Manhattan at the federal level issued a ruling that said Argentina could not make its payments to bondholders on exchanges without paying other holdouts.

The ruling was appealed by Argentina and the case moved to the U.S. Supreme Court. The appeal was rejected there just last month.

A spokesman for NML said, “During this process, the Special Master proposed numerous creative solutions, many of which were acceptable to us. Argentina refused to seriously consider any of them, and instead chose to default.”



 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Junior Commercial Litigation Attorney with products liability experience

USA-AZ-Phoenix

Phoenix office of our client seeks junior commercial litigation attorney with 1-3 years of experienc...

Apply Now

Employment Defense Attorney with 5+ years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks employment defense attorney with 5+ years of litigation exper...

Apply Now

IP Patent Attorney with 2-5 years of computer engineering experience

USA-WI-Milwaukee

Milwaukee office of our client seeks intellectual property patent attorney with 2-5 years of experie...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Legal Development Associate

USA-WI-Menomonee Falls

Seeking a talented and dedicated Real Estate Paralegal!   Continental Properties Company,...

Apply now

Associate

USA-CO-Denver

Hall Prangle & Schoonveld is a national trial defense law firm. We are seeking candidates for an Ass...

Apply now

Paralegal

USA-CO-Greeley

Growing full-service law firm based in Fort Collins and Greeley is seeking a full time Paralegal. Th...

Apply now

Paralegal / Legal Assistant

USA-NJ-Metuchen

Compensation $12 to $15 Hourly Employment Type Full-Time Last online 3 hours ago Why ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top