As Argentina celebrates closing the largest debt exchange
offer in history this month, a cloud of creditor lawsuits lurks
on its horizon. But it is a cloud that is likely to herald a
less dramatic storm than many had predicted.
In January Argentina, owing more than $100 billion to
hundreds of thousands of investors around the world, offered to
pay its creditors roughly 30 cents for each dollar due to them.
Seventy-six percent of the bondholders agreed to Argentina's
terms, resigning themselves to the fact that the government
either could not or would not pay more. But the remaining
creditors, representing almost $25 billion in outstanding debt,
have been left with a choice: cave in to the offer, or try to
force Argentina to pay more.
With Argentina apparently unwilling to negotiate, the most
obvious route open for these creditors to reach their money has
been through the courts. $25 billion is...