- Title: USA: Argentina debt talks continue in New York
- Date: 11th July 2014
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (JULY 16, 2014) (REUTERS) ARGENTINEAN DELEGATION ENTERING BUILDING FOR DEBT TALKS, INCLUDING FINANCE SECRETARY PABLO LOPEZ 245 PARK SIGN ON THE BUILDING INSIDE WHICH THE DEBT TALKS TOOK PLACE EXTERIOR OF BUILDING SECURITY PERSONNEL OUTSIDE THE BUILDING TALKING TO A MAN REPORTERS ARGENTINEAN ECONOMY MINISTRY'S LEGAL AND TECHNICAL SECRETARY FEDERICO THEA AND LOPEZ LEAVING THE BUILDING LOPEZ GETTING INTO THE CAR SURROUNDED BY REPORTERS AN ARGENTINEAN DELEGATE INSIDE THE CAR AND THEN CAR DRIVING AWAY VARIOUS OF JAY NEWMAN, PORTFOLIO MANAGER AT LEAD HOLDOUT CREDITOR FIRM, ELLIOTT MANAGEMENT CORP., LEAVING THE TALKS LEAD LAWYER FOR AURELIUS CAPITAL MANAGEMENT, EDWARD A. FRIEDMAN LEAVING TRAFFIC
- Embargoed: 26th July 2014 13:00
- Location: Usa
- Country: USA
- Topics: International Relations
- Reuters ID: LVA1K3HXDM2OF1RBA449R5FERXVW
- Story Text: Argentine officials and holdout investors met separately with the court-appointed mediator for five hours on Friday (July 11) in New York, presenting their cases in hopes of resolving a default dispute that has dragged on for over 12 years.
The Argentinean delegation included Finance Secretary Pablo Lopez as well as the Economy Ministry's Legal and Technical Secretary Federico Thea. Economy Minister Axel Kicillof did not participate.
The Argentinean delegates did not answer reporters' questions while entering and exiting the Manhattan building which houses the offices of Daniel Pollack, the Special Master appointed by U.S. District Judge Thomas Griesa as a mediator in the dispute.
Later, Pollack, put out a statement though saying that both the parties involved - representatives of Argentina and representatives of the bondholders, along with their respective lawyers - had come to meet with him. Pollack said that both sides presented their positions but "not in the presence of the other side". He also added in his statement that "no resolution had been reached" but that he hoped there would be "future dialogue".
Without a deal, Latin America's No. 3 economy risks tumbling into a new default as it battles a recession, one of the world's highest inflation rates and dwindling foreign reserves.
Argentina needs to seal a deal before a July 30 deadline with investors who rejected its debt restructurings after its catastrophic 2002 default on $100 billion (USD). At that time the majority of investors had accepted terms that are generally believed to be among the worst in recent memory.
Holdout creditors sued and won a court-ordered judgment of $1.33 billion plus accrued interest.
One of the lead holdout creditor firms in the sovereign debt dispute with Argentina is Elliott Management Corp. Jay Newman, a portfolio manager at the firm, did not speak to reporters on camera while leaving the meeting.
However, through a company spokesman Newman released the following statement -- "Argentina is still refusing to negotiate with its creditors, either directly or indirectly, about any aspect of this dispute, and we have not heard that it has any plans to change course."
He added that the company had "not seen any indication that Argentina is serious about even beginning a negotiation."
Argentina defaulted on roughly $100 billion in sovereign debt in 2002, with the majority of investors accepting terms that are generally believed to be among the worst in recent memory. Holdout creditors have sued and won a court-ordered judgment of $1.33 billion plus accrued interest.
Elliott and Aurelius Capital Management, are two hedge funds that specialize in buying up deeply discounted or distressed debt and negotiating profitable settlements, often through the use of the courts.
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