Thursday, October 30, 2014

'Instead of demanding acceleration, bondholders should take legal action against Griesa'

Cabinet Chief Jorge Capitanich speaks at the government house.

Cabinet chief Jorge Capitanich called bondholders to “take legal action against (US Judge Thomas) Griesa instead of demanding the acceleration of (Argentine) bonds,” following rumours that Owl Creek Asset Management LP is discussing the formation of a group to demand immediate repayment on bonds.

“Instead of demanding the acceleration, bondholders should take legal actions against (US Judge Thomas) Griesa who is improperly withholding funds,” the chief of ministers said in his daily press briefing at the government house.

Owl Creek said that it is working to demand the acceleration of Argentine debt as soon as January, which may provide investors with a gross return of 100 percent in a subsequent restructuring.

Capitanich reiterated the government claim that Argentina is honouring its debt commitments. “The one breaking the law is the judge himself, not Argentina,” he stressed and added that “ruling after ruling, judge Griesa reaffirms the situation of judicial limbo.”