Tags: default | Argentina | bonds | court

Argentina Says No Preparations for 'Possible' Trip to US in Bond Spat

Thursday, 19 Jun 2014 10:02 AM

Argentina Cabinet Chief Jorge Capitanich said on Thursday the government has no delegation prepared for a "possible" trip to the United States to seek negotiations in the ongoing bond dispute, casting doubt over whether the prospective talks will materialize.

Buenos Aires is locked in a 12-year legal fight with creditors who refused to participate in two restructurings that followed Argentina's 2002 default on $100 billion in bonds.

Argentina threatened to default on its debt on Wednesday night when the government called it "impossible" to meet a bond payment due on June 30.

Earlier on Wednesday in New York the 2nd U.S. Circuit Court of Appeals lifted the stay it had placed on an injunction by U.S. Judge Thomas Griesa barring payment to holders of restructured bonds via U.S. banks unless the "holdouts" were paid $1.33 billion at the same time.

A lawyer for Argentina told the court session presided by Griesa in Manhattan federal court that Argentine officials will seek next week to negotiate for the first time with the holdouts.

But the government on Thursday said nothing firm was in the works for now.

"There is no delegation prepared for a possible trip to the United States," Capitanich said in his morning briefing, without elaborating. "The lifting of the stay in general creates a problem for the Argentine Republic," he added.

The government of leftist President Cristina Fernandez says the decision makes it impossible to meet the next payment on restructured debt in New York.

Analysts say the tough talk may be a bid to bolster Argentina's power at the negotiation table. Others warn it is a slippery slope that risks further upsetting Griesa and throwing the country closer to another catastrophic default.

© 2017 Thomson/Reuters. All rights reserved.

   
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Argentina Cabinet Chief Jorge Capitanich said on Thursday the government has no delegation prepared for a possible trip to the United States to seek negotiations in the ongoing bond dispute, casting doubt over whether the prospective talks will materialize.
default, Argentina, bonds, court
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2014-02-19
Thursday, 19 Jun 2014 10:02 AM
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