Thursday, August 6, 2020

The New York court ordered the Government to pay USD 224 million for the default of the Kirchnerist administration

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The New York court ordered the government to pay $ 224.2 million to two investment funds that remained in default since the Kirchner administration.

The analyst Sebastián Maril anticipated the ruling of New York judge Loretta Preska, which upheld the claim for the funds Attestor Master Value (for USD 67.9 million and Trinity Investments (USD 156.3 million).

These are two funds that did not participate in the restructuring of the swaps 2005 and 2010, said Maril.

“These two funds constituted the largest holding of bonds in default and not restructured in the cases initiated before the judge Thomas Griesa“Maril said to Infobae, in relation to the magistrate who took all the causes of Argentina until his death.

Thus, “now Argentina only has about USD 300 million (plus interest) in litigation of that default in 2001,” Maril explained.

Official sources indicated to Infobae that “it will continue to be negotiated and appealed” and clarified that “it was something that was falling long ago”, Although it is the first ruling against the Argentine government since Alberto Fernández took office as president last December.

The defaulted bonds were issued between 1997 and 2001 in this case and their original holders did not enter the swaps after the default of late 2001, which were carried out in 2005 and 2010.

However, these two funds were purchased between 2013 and 2014 and, with the default of 2014 during the government of Cristina Kirchner, They began their legal claim, while requesting the acceleration of the respective debt.

The 2014 default was based on Griesa’s 2011 judgment, upheld by the New York federal chamber, which was in fact confirmed when the United States Supreme Court did not take the case and the ruling was final in favor of creditors. that they had not accepted the aforementioned exchanges and were demanding full payment of their titles.

93% of creditors had accepted these restructurings, but, in the absence of collective action clauses (CAC) on the bonds that were not paid, the North American justice considered that the country should pay the rest of the bondholders.

The then Minister of Economy, Axel Kicillof, rejected with the president a solution that the president of the Central Bank had designed, Juan Carlos Fábrega, to reach an agreement with the holdouts at a lower value than what the country had to pay after the ruling in the United States was final.

The government of Mauricio Macri It solved most of the pending cases between 2016 and 2017, as Maril pointed out, through an agreement that Griesa endorsed.

For this reason, Preska was withdrawing most of the lawsuits, for his file.

However, just over seven months after the start of the Fernández administration, this unfavorable sentence appeared, while the Government recently launched the swap to renegotiate the debt of the 2005, 2010 and 2016 bonds.

In this case, the titles to be issued do have collective action clauses, so if the government obtains certain majorities, the holdouts they will run out of arguments against foreign justice.

However, the redesignation mechanism established by the Ministry of Economy to carry out partial swaps, with a minimum support of 50%, could generate some litigation. It will be more complex for the bondholders of the Ad Hoc group, who have titles issued in 2016 but claim to have the protection of the titles of the 2005 swap, to have a forceful legal argument before the North American justice.

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