What are the details of the proposal of Argentina
The Argentina formally submitted its proposal to the holdouts who are ruling by Judge Thomas Griesa failure pari passu, said the Ministry of Treasury and Finance, through a statement.
"The proposal involves removing about 25% of the sentence, depending on the alternative chosen by the creditors who participate in it," he said today from the economic portfolio, after completing five consecutive days of negotiations between the parties, at the offices of mediator, Daniel Pollack. "The bid submitted will responds to claims that have a judgment for approximately 9,000 million dollars," they said.
• Then the formal proposal presented by Argentina
The Republic of Argentina proposes a restructuring agreement to all holders of its government bonds that did not enter the debt swap operations conducted in 2005 and 2010 under the terms of this proposal (the "Proposal").
With regard to government bonds for which the Federal Court for the Southern District of New York, United States issued precautionary measures called "pari passu injunctions" prior to February 1, 2016 (the "Precautionary Measures Pari Passu" and "Holders Pari Passu," respectively) it will consider a payment of approximately USD 6,500 million in case of full acceptance of the Holders Pari Passu.
The proposal includes the following two offers. 22.214.171.124. Offer Base. With respect to holders of government securities that do not have Precautionary Measures Pari Passu The proposal provides for "Base Offer" under which the restructuring of the government securities is proposed by a payment equal to the original principal amount owed plus 50% of said original principal amount.
126.96.36.199. Pari Passu offer. Pari Passu Holders may choose, as an alternative to the Offer Base, the so-called "offer Pari Passu" and is based on the following terms: (i) with respect to those government securities in relation to which it was issued a monetary judgment day prior to February 1, 2016, 100% of the original amount recognized in such a monetary judgment less a discount of 30%, and (ii) with respect to those government securities in respect of which has not been issued a monetary judgment day prior to February 1, 2016, the value of the claim accrued less a discount of 30%. Both discounts described under (i) and (ii) will be reduced to 27.5% in those preliminary restructuring agreements signed until February 19, 2016, inclusive. Both the Base Offer and the Offer Pari Passu, payment referred to in cash proceeds from the issuance of new government bonds to be placed Argentina in the capital markets.
Simultaneously with the implementation of this proposal it is contemplated that holders of government securities involving the same should give up all their rights, sums owed and prosecutions arising from its government bonds.
It is also contemplated that the amounts of principal and / or interest on the bonds they have prescribed under the contractual terms and the applicable legislation will not be recognized. Upon fulfillment of the conditions set out below Argentina will conduct a formal offer for restructuring under the terms of the Proposal.
The proposal is subject to approval by the National Congress and of the judgment that has the lifting of Precautionary Measures Pari Passu.