The possibility of Argentina restructuring its US
and UK bonds under local law has been met with scepticism due
to the sweeping nature of the judge’s order and
the anti-evasion clause affecting the institutions
Even before its partial default on Thursday, the government of
Argentina raised the prospect of moving its outstanding bonds
under local law.
The move would avoid a New York court ruling
preventing the country from paying restructured bondholders
unless it also paid holdouts.
Argentina failed to reach a settlement with holdout
creditors last Wednesday evening that would have allowed them
to move forward on payments to all bondholders. The
country’s government has engaged in negotiations
with the holdouts but the rhetoric from the president and
finance minister has remained...