Argentina makes progress with holdouts

Author: Edward Price | Published: 16 Feb 2016

In positive news for Latin American capital markets, Argentina is finally negotiating with its holdouts. Counsel are looking on with measured optimism.

The government has offered around $6.5 billion to US holdouts, which represents about a 25% haircut on the country’s defaulted sovereign bonds. Significantly, some major holdouts have accepted the offer, including Montreux Equity Partners and Dart Management. That’s a positive sign and could signal a more general change in Argentina’s position.

"The new administration has moved quickly to resolve the holdouts standoff and this offering could change the dynamics of negotiations completely," said Gabriel Gómez Giglio, partner at Baker & McKenzie.

Simon Whistler, Control RisksArgentina is making a broad effort with its holdouts. Agreeing terms would likely signal the country's return to international capital markets. Under President Mauricio Macri the administration has requested the end to an injunction preventing it from paying creditors without also paying the holdouts. ...