Argentina Defaults Again
July 31st, 2014Via: Forbes:
Things couldn’t have come out worse. Everyone lost: Argentina defaulted on its sovereign debt for the second time in 12 years, the holdout bond holders were left empty handed, and Federal Judge Thomas Griesa’s strategy to force Argentine to negotiate a settlement with the so-called venture funds failed. Furthermore, a least ditch effort by a group of Argentine bankers led by Banco Macro’s Jorge Brito fell through at the last second.
The decade-long legal battle between a group of hedge funds led by billionaire Paul Singer’s Elliott Management and the Argentine government, which is by no means done, resulted in the worst possible scenario. At the stroke of midnight on Thursday in New York, Argentina once again entered into a state of default, as holders of its restructured debt didn’t receive interest payments for $539 million. Credit rating agency Standard & Poor’s downgraded the country’s rating to selective default.
