January 17, 2021

A fund accuses Argentina of not wanting to negotiate its debt and requests a hearing before a judge



The Bainbridge fund, one of the creditors of the Argentine Republic, with whom it has an open court case in New York (USA), accused on Wednesday the Argentine government of not wanting to negotiate the payment of the debt contracted with this fund and He asked Judge Loretta Preska, who presides over the process, to call a new session with the intention of presenting a motion.

“We have been trying to resolve the case along the lines previously proposed by the Republic and consistent with the opinions of this court (…), but the Republic (Argentina) is no longer willing to reach an agreement on this basis, although it has resolved many of those claims in the past, “says the fund’s attorney in a brief document to which Efe has had access.

The Bainbridge fund holds securities issued by Argentina between 1992 and 1994, purchased under “pari passu” clauses, which guarantee equal treatment with respect to other subsequent creditors, and demands from the Latin American country 64 million dollars plus interest.

The fund advances the togada that intends to request that the postponement of the process that had been previously decreed be awaited pending a solution and to issue a decision on its claim, since it considers that Argentina has violated the clause “pari passu” contract by having made payments to other creditor funds.

Last week, the Argentine government offered to swap bonds issued between 2005 and 2016 for new securities with maturities between 2030 and 2047, to restructure $ 66,239 million of debt and avoid default.

The main investment funds rejected the proposal, which the Minister of the Economy, Martín Guzmán, indicated that it entails reducing the capital by 3.6 billion dollars, which is equivalent to a deduction of 5.4% on the stock owed, and the interests in $ 37.9 billion, equivalent to a 62% interest waiver.

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