Hedge fund Elliott Management Corp. is willing to consider accepting bonds as payment from Argentina in exchange for defaulted debt, according to a person familiar with the company.
Any decision to accept the securities would depend on the terms offered, said the person, who asked not to be identified because the fund’s strategy is private. NML Capital Ltd., the Elliott unit in litigation with Argentina, declined to comment on the talks.
The U.S. Supreme Court on June 16 left intact orders requiring Argentina to pay holders of defaulted bonds in full when making payments on restructured debt. An attorney for the South American nation said today in a hearing in New York that Argentine officials will start meetings with Elliott next week in a bid to negotiate and avoid a default.
Following its record $95 billion default 13 years ago, Argentina in 2005 offered to exchange its defaulted securities with bonds worth about 30 cents on the dollar and made a similar proposal in 2010. Owners tendered about 92 percent of the outstanding debt. The holdouts, including Elliott, fought for full payment in court and won.