UPDATE 1-Aurelius sees no realistic private solution in Argentine dispute

miércoles 13 de agosto de 2014 17:32 GYT

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By Daniel Bases

NEW YORK Aug 13 (Reuters) - Argentine holdout creditor Aurelius Capital Management said on Wednesday that talks with many financial institutions about finding a private settlement solution to the sovereign debt dispute had garnered no realistic proposals.

Argentina fell into default for a second time in 12 years after missing a July 30 coupon payment on already restructured sovereign bonds. After the deadline passed, hopes turned toward proposals drawn up first by Argentine and then by large international banks to work out a solution.

"That engagement has convinced us that there is no realistic prospect of a private solution," Aurelius said in a statement.

"No proposal we received was remotely acceptable. The entities making such proposals were not prepared to fund more than a small part, if any, of the payments they wanted us to accept. One proposal was withdrawn before we could even respond. And no proposal made by us received a productive response," the statement said.

The current default stems from a 2012 ruling by U.S. District Judge Thomas Griesa, who ordered Argentina to pay these holdout creditors $1.33 billion plus interest at the same time it made regularly scheduled coupon payments on its debt.

Buenos Aires, having run out of legal recourse in the United States, deposited its $539 million coupon payment with trustee Bank of New York Mellon but did not make the corresponding payment to the holdouts. Griesa called the deposit illegal

Griesa's order blocked the deposit from being distributed to bondholders and weeks of talks between the two sides before the deadline, under the aegis of the court-appointed mediator Daniel Pollack, failed.   Continuación...