Tuesday, April 21, 2015

NML Capital threatens legal action over new Bonar 2024 sale

NML Capital, one of the leading hedge funds in a legal battle against the national government, today said it was taking a close look at yesterday’s announcement of Economy Minister Axel Kicillof about a local sale of the Bonar 2024 bond to try to get round US restrictions on its market access.

The lead holdout creditor suggested it could take legal action over the sale.

"Those contemplating participation in Argentina's latest attempt at a global offer should understand that it appears to have all the hallmarks of external indebtedness that is covered by our pari passu rights," Robert Cohen, an attorney at NML Capital, said in a statement.

"We are closely scrutinizing this highly unusual transaction to determine what enforcement actions are appropriate," it added.

A bond issue of US$500 million, paying an interest rate of 8.75 percent, will be launched, Economy Minister Axel Kicillof announced yesterday at a news conference. It will be a new series of the Bonar 2024 bonds, which mature nine years from today.