Argentina fears default after American court ruling

[dipsydoodle]

Source: Guardian

Argentinian politicians and global debt campaigners have responded with fury to a US court judgment that risks plunging the country back into default.

Elliott Capital Management and Aurelius Capital Management, regarded as "vulture funds" by Buenos Aires, won a ruling in a New York court on Wednesday that could force Argentina to hand over $1.3bn (£816m) in repayments and interest to the tiny minority of bondholders who refused to sign up to a hard-fought writedown of its debts after the country defaulted in 2001.

Judge Thomas Griesa upheld his own ruling of last month backing Elliott Associates, and said: "Argentina owes this and owes it now."

In a strongly worded statement, Griesa said that Argentina should make repayments to the so-called holdouts at the same pace that it is repaying the vast majority of bondholders who did agree to a debt-swap. He also warned that US-based bank BNY Mellon, which handles Argentina's debt payments to US-based bondholders, would be acting "in active concert" with the republic, if it failed to comply with the ruling.

Read more: http://www.guardian.co.uk/world/2012/nov/22/american-ruling-fears-default-argentina

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More here : http://uk.reuters.com/article/2012/11/22/uk-usa-bonds-argentina-idUKBRE8AL0Q620121122

[DeSwiss]

1. K&R

Nixon appointee - Thomas P. Griesa

Vulture Capitalist - Paul Singer




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"Capitalism is the astounding belief that the wickedest of men will do the most wickedest of things for the greatest good of everyone." ~John Maynard Keynes

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[burrowowl]

2. K&R

Makes you want to bring back the the French invention.

[dipsydoodle]

3. Argentina willing to go to U.S. Supreme Court in bond row

(Reuters) - Argentina will appeal a U.S federal court ruling ordering it to pay $1.33 billion to holdout bond investors, the government said on Thursday, vowing to fight "judicial colonialism" all the way to the U.S. Supreme Court if necessary.

http://uk.reuters.com/article/2012/11/23/uk-argentina-bonds-idUKLNE8AM00420121123

[John2]

4. I

think the U.S. should do the same to the vultures in this country. If the judge want to look at unpaid debts, then he needs to go back more than 200 years. I'm pretty sure we can find debts unpaid by some of these very same vultures. That judge has no jurisdiction in Argentina. The vultures took risks and lost. Don't pay them a penny. THat is the way we should treat our vultures.

[cprise]

5. Next time you hear that 3rd world countries "need" western investment

...remember this.

[Judi Lynn]

6. The vulture capitalist who devoured Peru – and now threatens Argentina

The vulture capitalist who devoured Peru – and now threatens Argentina

Could Paul Singer destroy another economy?

Nikhil Kumar
Friday 23 November 2012


With his trimmed white beard and rounded metal spectacles, Paul Singer might come across as a slightly miffed professor, his lips pursed and one eyebrow arched a touch higher than the other.


But the balding billionaire behind the New York hedge fund group Elliott Management is in fact one of Wall Street's reigning titans, presiding over a business that is once again being portrayed as a greedy "vulture" for its attempts to coerce Argentina into shelling out billions to settle debts that it thought it had sorted out years ago. The result could be a disastrous debt default.

"To pay the vultures is not only unfair but illegal in terms of our internal rules," the country's economy minister, Hernan Lorenzino, said this week after a US court ordered Buenos Aires to come up with $1.3bn (£800m) that, in the eyes of the judge, it owed one of Elliott's affiliates and other hedge funds including Aurelius Capital Management.

The funds own Argentinian bonds affected by the country's debt default in 2001. But unlike the majority of investors, they held out for full payment when the country offered in 2005 and 2010 to settle those debts by agreeing to release part of what was due under the original contracts.

Argentina's President Cristina Fernandez de Kirchner has always held the debt to be illegitimate and says the country is not obliged to pay investors who held out when it reorganised its debts,

More:
http://www.independent.co.uk/news/world/americas/the-vulture-capitalist-who-devoured-peru--and-now-threatens-argentina-8347577.html

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Paul Singer[/center]

[LaPera]

7. An American court favoring American vulture corporations - Shocking!

The World Bank - ITO - IMF destroys countries while the vultures wait and come in afterwards to eat up what's left and then they get bullshit favorable court rulings - Fuck the bank vultures!