Holdouts request postponement of Argentina's proposal to solve dispute
Representatives from holdout investment funds have requested the Argentine government to postpone until the first week of February, next week's scheduled proposal to overcome the country's debt situation which remains technically in default.
The request was transmitted in a phone call by mediator Daniel Pollack to Luis Caputo, Argentina's Finance secretary, who is leading negotiations, reported the Treasury and Finance ministry.
“Last night in a phone call from mediator Dan Pollack, he informed me of the bond-holders request, because of logistics problems, to postpone the presentation of the Argentine proposal until the first week of February”, according to Caputo. The original date for the presentation was to be next Monday, 25 January.
The total sum in litigation is close to 10bn dollars, according to Argentine sources, following on Judge Thomas Griesa latest ruling which also included the so called 'me too'.
The release also points out that this week the Argentine government had sent out invitations to different leading international law firms, candidates to advise the Argentine government in the ongoing litigation. So far the representation of Argentina has been under the responsibility of Cleary Gottlieb Steen & Hamilton, which will become advisors of whatever firm is chosen to continue with the case.
Last week minister Caputo met in New York with mediator Pollack and representatives from the holdouts and announced that on the week beginning Monday 23 January, Argentina would be presenting its proposal to solve the litigation with United States justice over the holdout claims.
Caputo held meetings with the 'main holders' of non restructured bonds, and with representatives from the 'me too', which took place at Pollack's office in New York.
Following the meeting Caputo said he was 'satisfied' with this first meeting with representatives from the holdouts and underlined the Argentine government's predisposition to negotiate an understanding.
“If holdouts have the same intention and attitude, we should arrive to an agreement”, he was quoted by the Buenos Aires financial media.
That same day but in Buenos Aires, Treasury and Finance minister Alfonso Prat-Gay warned that the lack of an agreement with the holdouts had been “tremendously expensive for Argentina”, adding that in this new chapter of negotiations, which took off in New York, the Argentine government expects that creditors express “a similar responsibility to negotiate seriously”.