News / Americas

    US Judge Orders Argentina, Creditors to Reach Deal

    Jonathan Blackman, left, a lawyer representing Argentina, leaves federal court in New York, July 22, 2014.
    Jonathan Blackman, left, a lawyer representing Argentina, leaves federal court in New York, July 22, 2014.
    Reuters

    A U.S. judge ordered Argentina and investors who did not participate in the country's past debt restructurings to meet “continuously” with a court-appointed mediator until a settlement is reached, warning of the threat of a new default.

    U.S. District Judge Thomas Griesa in New York told Argentina and lawyers for investors who declined to restructure their bonds after the country defaulted on about $100 billion in 2002 that time was running out to reach a deal and avert a fresh default.

    “That is about the worst thing I can envision. I don't want that to happen,” the judge said.

    Jonathan Blackman, a lawyer for Argentina, Latin America's No. 3 economy, said even with around-the-clock talks, it would be “unlikely, if not impossible, to result in settlement.”

    “It simply can't be done by the end of the month,” he said.

    Settlement talks

    Griesa ordered the parties to meet with Daniel Pollack, a New York lawyer appointed to oversee settlement talks, “continuously until a settlement is reached.” Pollack scheduled a meeting Wednesday at 10 a.m. EDT (1400 GMT).

    Pollack, who was appointed June 23 as a mediator, has been holding meetings with the parties, publicly acknowledging talking twice with Argentine officials.

    Argentina is sending a delegation to meet with Pollack, but a government source said Economy Minister Axel Kicillof would not be among the group.

    The presidency of Argentina said in a statement that “Judge Griesa ... resolved absolutely nothing on any of the issues which had been brought before him.”

    A lead holdout creditor, Elliott Management's NML Capital Ltd, said in a statement it was prepared to meet with Pollack to resolve the dispute.

    “We are confident this matter could be resolved quickly if Argentina would join us in settlement discussions,” NML said.

    Argentine over-the-counter dollar-denominated bonds slid following the hearing, before recovering some of the losses. The bid price on the Discount bond was down 1.1 percent on a day earlier at $86.65 at 1725 local time (2025 GMT) while the Par bond was 0.8 percent lower at $50.80.

    “Clearly Argentina is running out of time,” said Ignacio Labaqui, an analyst for consultancy Medley Global Advisors. “Today is the first time I have seen the market believing that Argentina might default. It's up to Argentina to decide what it will do.”

    Argentina has been pushed to the brink of a fresh debt default by U.S. court decisions that it pay $1.33 billion plus interest to bondholders who did not participate in debt swaps in 2005 and 2010. The holdouts are led by NML and Aurelius Capital Management.

    The country argues paying the holdouts would open it up to as much as $15 billion in claims from other investors and further strain its financial condition.

    Court request renewed

    At Tuesday's hearing, Argentina renewed its request that the judge stay enforcement of his orders. Griesa said the step was not necessary, as there are “ways to do something to avoid default.”

    A lawyer for Aurelius, Edward Friedman, meanwhile urged him to reconsider part of a decision last month allowing Citigroup Inc to process payments Argentina made for bonds governed by the country's local laws. Friedman said payments should not be allowed on U.S. dollar-denominated bonds.

    Bank of New York Mellon Corp asked the judge to allow it to hold onto $539 million Argentina deposited last month for a payment to the restructured bondholders. Griesa previously ordered the sum returned, saying it violated his orders.

    Griesa on Tuesday issued no ruling on the Citigroup issue, and told BNY Mellon and the holdouts to see if they could reach an agreement.

    You May Like

    Video Rubio Looks to Surge in New Hampshire

    Republican presidential candidate has moved into second place in several recent surveys and appears to be gaining ground on longtime frontrunner Donald Trump

    UN Calls for Global Ban on Female Genital Mutilation

    Recent UNICEF report finds at least 200 million girls and women alive today have undergone female genital mutilation in 30 countries

    UN Pilots New Peace Approach in CAR

    Approach launched in northern town of Kaga Bandoro, where former combatants of mainly Muslim Seleka armed group and Christian and animist anti-Balaka movement are being paid to do community work

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    German Artists to Memorialize Refugees With Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers US Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.

    More Americas News

    Colombia: 3,100 Known Zika Cases in Pregnant Women

    But Santos says in televised address in his country that there's still no evidence definitively linking the virus to microcephaly in newborns

    Pope to OK Use of Indigenous Languages for Mass in Mexico

    Move before trip to the country next week is symbolic gestures in defense of Indian rights

    Ecuador Sacks Military Top Brass Over Questioned Land Deal

    Armed Forces apparently sold 66 lots to Environment Ministry for $48 million, but report from Attorney General's office says they were worth only $7 million

    Video Zika Virus Dubbed Inconsequential Except for Link to Microcephaly

    Virus fairly harmless overall, health expert says, but possible link to thousands of babies born with underdeveloped brains causing alarm worldwide

    Obama Ramps Up Aid to Colombia as Peace Deal With Rebels Nears

    Leaders mark anniversary of joint initiative begun to help end armed conflict, drug trade; Obama calls Colombia a country 'on the brink of peace'

    Peru Board Weighs Another Presidential Election Disqualification

    Julio Guzman didn't fulfill requirements when registering his party, National Jury of Elections says; Cesar Acuna may also be barred because of plagiarism probe