Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

US investor fund says 'no realistic prospect' for private deal to end Argentina default

BUENOS AIRES, Argentina - Negotiations have apparently ended without success on a private-sector deal to end the legal battle that forced Argentina into default last month for the second time in 13 years.

Aurelius Capital Management LP said it had been in talks with private parties to sell its Argentine bonds at the heart of the dispute, but the offered payments were not even "remotely acceptable," to the U.S.-based investment fund.

"That engagement has convinced us that there is no realistic prospect of a private solution," Aurelius said in a statement issued late Wednesday that did not disclose the details of the proposals, nor the participants.

Argentina was forced into a default July 30 by its decade-long legal battle with Aurelius and other U.S. investors who refused to accept lower payments for bonds that the South American country defaulted on in 2001.

The investors obtained a U.S. court order, upheld by the Supreme Court, preventing Argentina from making a $539 million interest payment on July 30, triggering a second default by the country. Analysts have warned that the default could derail an already weak Argentine economy.

Argentina has said it cannot pay the approximately $1.5 billion sought by the holdout investors without offering the same terms to investors who previously accepted lower payments, at least not until next year when a clause requiring equal treatment expires. The Argentine government says it is not really in default, since it made the interest payment but the bank was prevented from distributing the money.

Argentine media have reported that local and multi-national banks have been in negotiations to buy the debt from the holdouts but none of the alleged participants have confirmed the talks or been willing to publicly discuss the details. Aurelius said that the entities making the proposals "were not prepared to fund more than a small part, if any, of the payments they wanted us to accept."

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100

Social Media

Canadian Mortgage Rates