he text specified “the deposited amounts are fiduciary property of the holders” and it is the duty of the fiduciary agent to “hold them on behalf of the holders’ benefit.”

Friday, June 27, 2014

Gov't publishes legal notice to inform about payment to swap bondholders

The government today published a legal notice on leading media outlets of Argentina, to inform about the 539 million deposit the government made yesterday in the Bank of New York to pay swap bondholders, as it was announced yesterday by Economy Minister Axel Kicillof.

Addressed to “the holders of Argentine debt” from 2005 and 2010 swaps, the notification said that “in observance of the obligations assumed in the Trust Indenture dated on June 2, 2005, modified on April 30, 2010, before the holders and the fiduciary agent (Bank of New York Mellon - BoNY) (Argentina) has deposited the amounts corresponding to the next interest due dates on June 30.”

"The amounts add up to 539 million US dollars which will have to be distributed by the fiduciary agent to each and all the holders, according to the mentioned Trust Indenture,” it read.

The text specified “the deposited amounts are fiduciary property of the holders” and it is the duty of the fiduciary agent to “hold them on behalf of the holders’ benefit.”

The government’s move comes after President Cristina Fernández de Kirchner’s administration yesterday deposited the next payment needed to avoid a default on its restructured bonds, but US federal court Thomas Griesa decided not to let the payment go through.