Bond holder slams Argentina's 'broken promise'

Axel Kicillof, right, Argentina's minister of economy, speaks at the United Nations with Hector Timerman, Argentina's minister of foreign relations, in New York June 25, 2014.
Reuters

Argentina hasn't been serious about negotiating a solution to its debt crisis with its hedge fund creditors, according to Elliott Management.

"Argentina's professed willingness to negotiate with its creditors has proven to be just another broken promise. NML is at the table, ready to talk, but Argentina has refused to negotiate any aspect of this dispute," Jay Newman, senior portfolio manager at Elliott, said in a statement Monday (NML is a unit of the firm).

"There are no negotiations underway, there have been no negotiations, and Argentina refuses to commit to negotiations in the future. Argentina's government has chosen to put the country on the brink of default. We sincerely hope it reconsiders this dead-end path. "

Argentina was due Monday to make a new round of payments on the restructured bonds that most holders of its debt agreed to after a default in 2001. Elliott and others are so-called holdouts hoping for payment closer to the value of the original bonds. A New York court has ordered Argentina to pay the hold-out creditors at the same time as holders of the new bonds, a decision the U.S. Supreme Court recently said it would not revisit.

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