Special master Daniel Pollack says new settlements are closeSaturday, April 16, 2016
Griesa to lift injunctions after payment
Once Argentina pays the “vulture” funds, United States District Judge Thomas Griesa will lift the injunctions against the country, court-appointed mediator Daniel Pollack said yesterday, following the appeals court ruling that cleared the way for Argentina to pay its debts.
“That certification could come as early as Thursday or Friday of next week, depending on when Argentina does its capital-raise needed to make the agreed payments,” Pollack said in a press release. “Argentina will be freed of the Injunctions that have kept it isolated from the global financial markets for years.”
The Second US Circuit Court of Appeals in New York confirmed this week Griesa’s decision saying that a injunction freezing payments should be lifted once Argentina pays the so-called “vulture” funds.
The special master said the impact of the ruling was “immediate and positive” as several of the remaining holdouts that haven’t settled approached Argentina and have either signed deals or are in active negotiation to do so — including including one group of individual bondholders who hold approximately US$300 million face amount of defaulted bonds, with claims of US$800 million.
“Prior to the ruling, it did not seem likely that agreement could be reached with these individuals. But as a result of the swift and decisive action by the Court of Appeals, it is a reality about to happen. I anticipate that the Summary Order will galvanize yet further settlements,” Pollack said. “It is particularly gratifying to me to see that settlements continue to be made.”
The appeals court made public yesterday the reasons of its ruling and said despite it creditors won’t be forced to accept Argentina’s offer, as they are “free to continue to negotiate without an injunction and may take steps, perhaps including litigation, to protect their interests.”
“Lifting the injunctions doesn’t deprive the district court of the authority to put in place new and efficacious injunctions,” the court warned.