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Source: Channel News Asia
Argentina says will pay all creditors in Buenos Aires
POSTED: 21 Aug 2014 02:09
BUENOS AIRES: Argentina said on Wednesday (Aug 20) it will pay all its creditors in Buenos Aires, seeking to circumvent a US court order barring it from repaying the debt it restructured after its 2001 default.
The move aims to work around US District Court Judge Thomas Griesa's ruling in favor of two "holdout" creditors refusing to accept a write-down on their bonds, which has blocked Argentina from servicing its restructured debt and forced it into a new default.
But it is unlikely to resolve the country's dispute with the two hedge funds that took it to court for US$1.3 billion (S$1.6 billion), NML Capital and Aurelius Capital Management, which Argentina calls "vulture funds."
The announcement comes after President Cristina Kirchner said on Tuesday that Argentina was replacing Bank of New York Mellon, the bank responsible for transferring its debt payments to creditors, with the Argentine state-run Banco Nacion Trust.
Read more: http://www.channelnewsasia.com/news/business/international/argentina-says-will-pay/1322452.html