USA: Argentina's Economy Minister Axel Kicillof arrives at the office of a New York-based mediator in a last-minute bid to thrash out a deal with holdout investors whose legal action risks toppling the country into default

Record ID: 449156

  • Title: USA: Argentina's Economy Minister Axel Kicillof arrives at the office of a New York-based mediator in a last-minute bid to thrash out a deal with holdout investors whose legal action risks toppling the country into default
  • Date: 30th July 2014
  • Summary: NEW YORK, NEW YORK, UNITED STATES (JULY 30, 2014) (REUTERS) COURT-APPOINTED MEDIATOR DANIEL POLLACK WALKING (SOUNDBITE) (English) COURT APPOINTED MEDIATOR DANIEL POLLACK SAYING: "It's a beautiful day. It will be a more beautiful day if the parties reach an agreement." DANIEL BOCCUZZI, A LAWYER FOR ARGENTINA WALKING ARGENTINE DELEGATION LED BY ARGENTINE ECONOMY MINISTER AXEL KICILLOF WALKING
  • Embargoed: 14th August 2014 13:00
  • Keywords:
  • Location: Uruguay
  • Country: Uruguay
  • Topics: International Relations
  • Reuters ID: LVA534KWN0V38B3SNXF6F028WRQY
  • Story Text: Argentina was in a race against time on Wednesday (July 30) to cut a deal by the end of the day with holdout investors suing it or win a reprieve from a U.S. court, as a surge in the country's bond prices fed optimism that an agreement was possible.
    Attorneys for holdout hedge funds awarded $1.33 billion plus interest by a U.S. court arrived for talks at the New York offices of court-appointed mediator Daniel Pollack on Wednesday morning, with hours to go Argentina faces its second default in 12 years. Pollack arrived shortly thereafter.

    "It's a beautiful day. It will be a more beautiful day if the parties reach an agreement," Pollack told Reuters as he entered.
    Argentine Economy Minister Axel Kicillof arrived shortly after 11 a.m. EDT (1500 GMT) for the talks.
    The holdout funds are demanding demand full repayment on bonds they bought at a discounted rate after the country last defaulted in 2002.
    The price of the South American country's bonds surged 15 percent on Wednesday to levels not seen in 3-1/2 years, a sign to some investors that a deal was attainable before another damaging default.
    Latin America's No. 3 economy has for years fought NML Capital, a unit of Elliott Management Corp, and Aurelius Capital Management, the leading U.S. hedge funds that rejected large writedowns. After exhausting legal avenues, it faces default if it cannot reach a last-minute deal.
    The Buenos Aires government has pushed hard for a stay of the U.S. court ruling that triggered Wednesday's deadline.
    The government has until midnight Wednesday (0400 GMT on Thursday) to break the deadlock. If it fails, U.S. District Judge Thomas Griesa in New York will prevent Argentina from making a July 30 deadline - representing the end of a 30-day grace period - for a coupon payment on exchanged bonds.
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