Elliott Management Corp., the hedge fund run by billionaire Paul Singer that owns defaulted Argentine debt, said it’s only willing to negotiate a settlement with the government and has no interest in holding talks with fellow bondholders.
“We welcome the idea of good-faith negotiations with Argentina, but we don’t see the point of negotiating with other bondholders,” Elliott, which is seeking full repayment in U.S. courts, said in a statement. “We have approached Argentina countless times about negotiating a resolution to this dispute. It is completely within Argentina’s power to solve this.”
Gramercy Funds Management LLC, the Greenwich, Connecticut-based hedge fund that helped orchestrate the nation’s second restructuring in 2010, is seeking support from other holders of restructured securities to devise a plan to help settle lawsuits against the country, according to bondholders approached by officials from the firm. Gramercy’s initial proposal called for holders of restructured bonds to hand over a portion of their interest payments to investors with defaulted securities, in exchange for dropping their claims.
Katrina Allen, a spokeswoman for Gramercy with ASC Advisors LLC, declined to comment on the talks.
Officials at Elliott haven’t been approached with a plan from holders of restructured bonds or the Argentine government, the firm said.
Norma Madeo, a spokeswoman at the Argentine Finance Ministry, didn’t return an e-mail seeking comment on efforts to resolve the conflict between creditors.
A U.S. Appeals Court said on Aug. 23 that Argentina can’t make payments on restructured bonds that were issued in its 2005 and 2010 debt restructurings unless it pays holdouts led by Elliott in full. The effect of the ruling is being delayed until the Supreme Court decides whether to hear the case.
The legal battle has spurred concern Argentina would opt to default on its overseas bonds for a second time since 2001 rather than settle with holdouts that President Cristina Fernandez de Kirchner has dubbed “vultures.”
Argentina’s benchmark overseas dollar bonds due 2033 rose 0.5 cent to 76.9 cents on the dollar at 4:50 p.m. in New York.
The extra yield investors demand to own Argentine government notes instead of U.S. Treasuries narrowed four basis points, or 0.04 percentage point, to 836 basis points, according to JPMorgan Chase & Co. indexes.
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