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Aurelius says private talks over Argentina debt have failed

Aug 14, 2014

Aurelius Capital Management’s negotiations with private parties to find a solution to Argentina’s default have failed, the holdout creditor said on Wednesday.

   The presidential palace. (Dvortygirl)  
Aurelius Capital Management's negotiations with private parties to find a solution to Argentina's default have failed, the holdout creditor said on Wednesday: "In addition to our exhaustive efforts to settle with Argentina, we have engaged with many private parties about a so-called 'private solution' that would avert or end the present event of default on tens of billions of dollars of Argentine sovereign debt. That engagement has convinced us that there is no realistic prospect of a private solution," Aurelius said in media statement.

Holdout creditors led by NML Capital have been unable to agree with Argentina, despite mediation by a court-appointed negotiator, Daniel Pollack. The sovereign defaulted last month after failing to reach a deal with the holdouts - without which, US courts have ruled Argentina cannot service restructured bonds. Aurelius' statement was the first official confirmation that rumored negotiations between holdouts and private institutions had actually taken place.

"No proposal we received was remotely acceptable," Aurelius said. "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 One proposal was withdrawn before we could even respond.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.

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