posted at 06:50
Author Name: Linette Lopez
New Threat To Argentina Is Acceleration
With acceleration, all bondholders call in their entire debt immediately. In not caring, Argentina made it impossible to pay the bondholders who had restructured their debt, the exchange bondholders. Argentina set up a mechanism for exchange bondholders to get paid in Buenos Aires, instead of New York, but it hasn't worked. "We were asked in very theoretical terms what our thoughts were on acceleration," one bondholder told Reuters. In August, exchange bondholder hedge fund Owl Creek Asset Management gave a presentation about Argentina, Bloomberg says. Argentina, for its part, has said these exchange bondholders should blame the holdouts for their troubles - and US judge Thomas Griesa, who ruled in the holdouts' favor. Exchange bondholders have said that they're looking to January to see if Argentina actually negotiates with the holdouts. Because Argentina could not pay all the exchange bondholder debt at once, it would have to restructure.

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