Elliot CEO slams bondholders' 'Bizarre' judicial proposal

Paul Singer, head of Elliot Management Corp.

Paul Singer, head of Elliot Management Corp., defined as “bizarre”, the bondholders’ offer to resolve judicially the dispute with Argentina over the debt in default from 2001, in a letter sent to investors and published by Bloomberg News.

“The proposal is beyond bizarre and impracticable”, Singer wrote, as he insisted on negotiating directly with the country.

“It is a stunt”, he assured.

Meanwhile, Steve Bruce, spokesman for the Gramecery investment group and hedge fund who were responsible for the proposal, refused to comment on the matter.

During a video interview with the Wall Street Journal on Satuday, Singer described Argentina’s public policy as “horrendous” and stated that he could settle the dispute “in an afternoon.”

On Friday, according to Noticias Argentinas news agency, around 20 international investment funds who own about seven billion dollar in bonds of Argentina’ debt are considering ceding a portion of it back to the hedge funds.

In exchange, according the agreement, the so called ‘Vulture Funds’ who rejected the debt restructuring process in 2005 and 2010 should desist from their demands and enter into the debt swap.