Argentina has been cleared by the US court to pay its debt and return to the global credit market. It is considered a hallmark of the Argentinian government which fought its way over a number of defaults and litigation.
According to Bloomberg, the US court's ruling will end the long and bitter battle that held Argentina from paying its debts and creditors. Argentina and the US government had always urged the court to allow the deal to proceed.
Held for 15 years, Argentina is now prime and ready to make its first international sale which will eventually raise the country's fund in order to pay creditors who resisted debt restructuring. The Macri administration is now looking at the possibility of engaging in New York and London's bond which could raise $15 billion to help pay the $8 billion settlements with its holdout creditors as per Reuters.
Aurelius Capital Management and Elliot Management NML Capital Ltd. are consider the country's major creditors. They now hold a deadline for Argentina to pay its $4.65 billion debt but reports confirmed that these creditors are willing to extend the deadline if the country will not be able to make it.
NML's lawyer, Mathew McGill, however, said they need to place Argentina's feet on fire. McGill added that they still urged the court not to lift the injunction for them to have a leverage in case something goes wrong.
As reported by Nasdaq, Argentina's lawyer, Paul Clement, told the judges that the goal of the country is to re-enter the wider capital market and normalize its financial relationship with the rest of the world. Clement added that not following their promises can jeopardize everything.
US Circuit Judge Christopher Droney who announced the ruling said that Judge Thomas Griesa did not abuse his power by lifting the injunction of Argentina's case. Droney added that Griesa should make sure that Argentina has already revoked two debt-related laws and paid its creditors before lifting the injunctions. Argentina, however, offered to settle the litigation with its creditors once Griesa lifts the injunction.
© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.
Get the Most Popular Lawyerherald Stories in a Weekly Newsletter
Join the Discussion
Related Articles
