Titoli di Stato area non Euro ARGENTINA obbligazioni e tango bond (3 lettori)

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No Resolution in Argentina Bond Dispute

Government Representatives, Bondholders Meet Separately With Mediator to No Avail








By Maria Armental


July 11, 2014 6:40 p.m. ET


Argentina representatives and bondholders met Friday separately with a court-appointed mediator in New York in an effort to resolve a creditor dispute that could see Argentina default on its debt.

No resolution was reached, said Daniel A. Pollack, the special master appointed in federal court to oversee negotiations between the South American country and a small group of hedge funds suing to collect on defaulted Argentine bonds.

Argentina risks defaulting again if it doesn't reach a deal by July 30.
Mr. Pollack said the parties met with him Friday afternoon and presented their positions, "but not in the presence of the other side."

Mr. Pollack didn't provide details about the discussions.

On Monday, Argentina's Economy Minister Axel Kicillof had asked that federal Judge Thomas Griesa suspend his ruling barring the country from paying investors who own restructured bonds unless it also pays the hedge funds. The Argentine government argued complying with the order is impossible.

Argentina last defaulted on its public debt in 2001, when it stopped making payments on about $100 billion amid a deep economic crisis.

The country offered holders of the defaulted bonds new securities valued at about 33 cents on the dollar in 2005 and 2010. Between the two swaps, investors agreed to exchange almost 93% of defaulted bonds eligible for restructuring.

However, hedge funds led by Elliott Management Corp. affiliate NML Capital Ltd. and Aurelius Capital Management LP decided not to tender their bonds and instead sued for full repayment.

Last month, the U.S. Supreme Court declined to hear Argentina's appeal, leaving in place Judge Griesa's decision that Argentina must treat all of its creditors equally.


--Ken Parks and Nicole Hong contributed to this article.
Write to Maria Armental at [email protected]
 

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