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LONDON A legal clause as the key to smoothing future debt restructurings could be undermined by a U.S. court ruling that Argentina must pay creditors holding its defaulted debt. The case has implications for emerging markets, source of protracted and painful past defaults, and for Europe, where the rules setting up the euro zone’s bailout fund state that government bonds must carry Collective Action Clauses from 2013. Known as CACs, the clauses make a restructuring binding for all creditors if agreed by a specified majority — usually 75 percent. They are intended to eliminate the risk that some investors will [...]

NEW YORK A U.S. appeals court on Tuesday refused to order Argentina to post a security deposit of at least $ 250 million while it seeks to overturn a lower court ruling that orders it to pay holdout investors $ 1.33 billion. Holdout creditors have sought to force Argentina to deposit the money by December 10 while the country appeals last month’s order by U.S. District Judge Thomas Griesa that it pay the creditors in full. Argentina had won a reprieve last Wednesday when the U.S. Second Circuit Court of Appeals in New York said Argentina need not deposit $ [...]

Investors suing to recoup losses from Argentina’s 2002 debt default have asked a U.S. court to order the country post a security deposit of at least $ 250 million by December 10, while an appeal of a lower court’s order is pending. In an emergency motion filed late Friday, the “holdout” creditors urged the 2nd U.S. Circuit Court of Appeals to modify its ruling from Wednesday that halted an order for Argentina to deposit $ 1.33 billion into an escrow account by December 15 on the investors’ behalf. They say this only gives Argentina more time to plot a way [...]

Argentinian President Cristina Fernández said the country would continue to honour its commitments asPresident Fernández has said Argentina would keep paying “as befits a country which has recovered its self-esteem”New York Judge has ordered Argentina to make the escrow payment as it is due to pay over $ 3bn in restructured debt(Financial Times) — A US appeals court has put on hold a New York judge’s order for Argentina to pay $ 1.3bn into escrow for holders of its defaulted debt by December 15, quelling fears of an imminent default.The Second Circuit Court of Appeals granted the stay and set [...]

An Argentinian vessel, the Libertad, was detained in Ghana on October 2 following a request from NML Capital Ltd.Argentina is trying to escape a ruling on an “equal footing” clause that has triggered fears of a fresh defaultLast week, a New York Judge ordered Argentina to pay $ 1.3bn to a group of plaintiffs led by the fund NML CapitalArgentina swapped nearly 93 per cent of the almost $ 100bn on which it defaulted in 2001 in two rounds of restructuring(Financial Times) — Argentina has asked a US appeals court to reimpose a stay on payment to hedge funds that [...]

An Argentinian vessel, the Libertad, was detained in Ghana on October 2 following a request from NML Capital Ltd.Argentina has refused to pay on past judgments against it, arguing that the funds were “vultures” Argentina is due to pay about $ 3.4bn in total in December to various restructured bondholders(Financial Times) — Argentina will have to pay $ 1.3bn to hedge funds that refused to restructure their debts after the country’s 2001 default when it makes regular payments to its restructured bondholders in December, a US court has ordered.The ruling, made late on Wednesday in New York, raises the possibility [...]

NEW YORK Argentina asked a U.S. judge late on Friday to maintain his order blocking payment on defaulted sovereign bonds to holdout investors until lingering questions are settled in a higher court’s appeals process. Less than 15 minutes before a midnight deadline on Friday, Argentina’s lawyers filed their brief outlining why U.S. District Judge Thomas Griesa should reject the argument by holdout creditors to pay them in full on debt that has been in default since 2002. The arguments came three days after Argentina asked the U.S. 2nd Circuit Court of Appeals in New York to reconsider its October 26 [...]

Argentina filed a petition for a rehearing with a U.S. appeals court on Tuesday over a debt ruling that would force the country to pay holdout creditors owning bonds in default since 2002. The court filing said Argentina is seeking a rehearing with the three-judge panel that ruled in favor of the holdouts last month, as well as with the entire U.S. Court of Appeals for the Second Circuit. Argentina in its brief said the earlier appellate ruling last month interpreted a “boilerplate” provision underlying trillions of dollars in debt in a way that was “inconsistent with market understanding.” If [...]

MEXICO CITY Argentina will use all legal means to defend its position against a U.S. court ruling that would force the country to repay creditors who sued to collect on defaulted Argentine bonds, Economy Minister Hernan Lorenzino said on Monday. Argentina staged the world’s biggest sovereign debt default in 2002 during a deep economic crisis. About 93 percent of Argentine bondholders agreed to swap their defaulted debt for new issues in 2005 and 2010, but “holdout” creditors who rejected the swaps continued to press for full repayment on the bonds in courts throughout the world. Late last month, a federal [...]

Corn prices are falling as new forecasts predict rain in Argentina, where the crop has been damaged by hot, dry weather. Corn dropped 2.3 percent Thursday. Wheat fell 3.2 percent and soybeans ended down 1.7 percent. Hot weather has…