Failure of Private Deal Over Argentine Debt by Hedge Fund Holdouts
Aurelius Capital Management announced that efforts to reach a deal with private parties in the wake of Argentina’s debt had collapsed. The firm is one of the hedge funds that has battled with Argentina over billions of dollars in bond payments.
The firm added also that it has addressed to private parties in order to reach out for a solution to help end Argentina’s current sovereign debt crisis.
“No proposal we received was remotely acceptable,” Aurelius said in a statement on Wednesday afternoon.
Aurelius is part of a group of New York hedge funds, led by Paul E. Singer’s Elliott Management, that are demanding to be paid in full on $1.3 billion in Argentine bonds.
Aurelius is a $4.8 billion hedge fund was founded by Mark Brodsky, a former Elliott employee. Their battle stems from 2001, when Argentina defaulted on more than $80 billion of bonds.
More recently, some of the holdouts have held talks with representatives of international banks including HSBC, Deutsche Bank, Citigroup and JPMorgan Chase about a deal in which the banks would buy the defaulted bonds from the holdouts, according to one person briefed on the matter but not authorized to speak publicly
However, Aurelius dismissed any lingering optimism that a deal could still save the situation.
Source: NYT
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