UPDATE 3-Argentine holdout sees Repsol, Paris Club deals as model for talks

martes 1 de julio de 2014 22:13 GYT

(Adds Argentine economy ministry statement, rating change)

By Daniel Bases and Sarah Marsh

NEW YORK/BUENOS AIRES, July 1 (Reuters) - Argentina's past deals to settle claims with Spanish oil major Repsol SA and the Paris Club of creditor nations could serve as examples of how to negotiate a settlement to a decade-old debt dispute, one of the lead holdout bondholders said on Tuesday.

Argentina faces a potential default unless it reaches a deal with holdout investors by July 30 when it must make a payment on its restructured sovereign debt. The holdouts rejected previous restructuring deals Argentina offered after it defaulted on about $100 billion in 2001-2002.

Standard & Poor's rating agency placed Argentina's 'CCC-/C' unsolicited long- and short-term foreign currency ratings on "CreditWatch" with negative implications on Tuesday, citing likelihood of a default in interest payments.

Jay Newman, senior portfolio manager at Elliott Management, one of the lead holdouts in the sovereign debt dispute with Argentina, told CNBC TV Argentina's deal with the Paris Club was "important and illustrative" for a possible agreement.

"Argentina recognized after also about the same amount of time we have been dealing with our claims, recognized the total claim of the Paris Club, principal, interest, and penalties," Newman said.

However, Argentina awarded Repsol only 50 percent of what it had originally demanded for Argentina's seizure of its YPF subsidiary.

Argentina was ordered by U.S. District Court Judge Thomas Griesa in New York in 2012 to pay the holdouts, led by Elliott Management Corp and Aurelius Capital Management, $1.33 billion plus accrued interest.   Continuación...