Wednesday, April 22, 2015

Griesa asks Argentina, banks information on recent bond offering

This file photo shows US judge Thomas Griesa.

US District Judge Thomas Griesa has called for an urgent meeting with representatives of Argentina and so called “vulture” funds to address the country’s move to issue dollar-denominated debt, selling US$1.4 billion despite pressure by NML Capital, one of the two leading hedge funds involved in debt talks with Buenos Aires, to scare off potential investors.

After the meeting meeting, Griesa urged Argentina to provide details on the dollar bond operation.

Banks subscribed to the offering, including Deutsche Bank and Banco Bilbao Vizcaya Argentaria SA, will also have to provide information.

Hedge fund lawyer Robert Cohen said during the hearing that “according to press reports” Deutsche Bank bought bonds for 1 billion dollars and BBVA bought bonds for 400 million dollars. The Argentine government issued BONAR24 bonds for 1.475 billion dollars.

Earlier this week, Economy Minister Axel Kicillof had said “Paul Singer’s vulture fund had issued a statement (prior to the operation) warning it will closely watch that offer.”

“These vulture funds are seeking again to extort, to frighten those who want to work with Argentina”, Kicillof said.

NML’s lawyer Cohen said the operation has “all the characteristics of a foreign debt offering, which would be covered by our pari passu rights.” Kicillof answered the BONAR24 offering was issued under Argentine law.