Argentine bondholders denied access to deal terms

Thu Nov 5, 2009 5:57pm GMT
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BUENOS AIRES, Nov 5 (Reuters) - A U.S. federal judge ruled that holders of defaulted Argentine bonds cannot compel investment banks working with the government in a debt restructuring offer to provide details on the deal, Argentina's government said on Thursday.

Judge Thomas Griesa, of the U.S. District Court of the Southern District of New York, ruled the investors should not be given access to terms, bank fees and documents filed with the U.S. Securities and Exchange Commission regarding the offer, according to a statement issued by Argentina's Economy Ministry.

In the ruling, Griesa said that negotiations for Argentina's debt exchange offer with the banks is still not concluded and the release of any information on the offer could jeopardize the country's ability to move forward with the deal, the statement said.

One of the biggest holders of Argentine defaulted debt, NML Capital, had filed a motion in September to compel three banks hired by the Argentine government to provide information about an eventual debt restructuring offer.

Argentina defaulted on roughly $100 billion of sovereign debt eight years ago and later restructured the debt with a steep discount.

Holders of some $20 billion in defaulted Argentine bonds did not enter the restructuring and some of these so-called holdouts have sued, trying to recover the full value of the paper.

The government has since announced it plans to reopen the 2005 debt restructuring and hired Barclays Plc (BARC.L: Quote, Profile, Research), Citigroup Inc (C.N: Quote, Profile, Research) and Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research) to manage the reopening.

NML, a New York-based affiliate of Elliott Management Corp., says it holds about $2.5 billion worth of Argentine debt acquired prior to the default, including accrued interest and judgments. (Reporting by Vivianne Rodrigues; Editing by Leslie Adler)

 
 
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