Friday, August 1, 2014

Foreign private banks, hedge funds closer to overcoming barrier in talks

Holdhout hedge funds and the three foreign private banks involved in negotiations to buy Argentine sovereign debt have come closer to a common position, a report by journalist Guillermo Laborda inámbito.com reveals.

Executives of Citibank, JPMorgan and HSBC were negotiating with vulture funds with sources close to the story saying chances of an agreement still stand.

Parties are setting out the purchase of part of the defaulted bonds in possession of so called “vulture funds” that refused to enter Argentina’s 2005 and 2010 debt restructurings, a move that would allow the reinstatement of a stay and block the payment to holdout investors – US District Court Judge Thomas Griesa ruled the South American country had to pay creditors u$s1.3 billion plus interests, a decision that triggered default alarms here and led to ongoing negotiations over the past weeks in New York.