Argentina 2014

About Argentina 2014

Argentina defaulted again on July 30, 2014, after a US court ruled that Argentina could not pay restructured bondholders without also paying holdout creditors in full. The case was brought by NML Capital, a subsidiary of Elliott Management led by Paul Singer. NML had purchased Argentine bonds at deep discounts after the 2001 default and demanded full payment. Judge Thomas Griesa ruled that Argentina violated the pari passu clause, which requires equal treatment of creditors. Argentina was effectively locked out of international bond markets. The dispute was resolved in 2016 under President Mauricio Macri, who agreed to pay holdout creditors 4.65 billion, approximately 75 percent of their claim. The case established the power of holdout creditors in sovereign debt restructuring.