Argentina Re-opens Debt Exchange in 2010
In June, Argentina completed the reopening of its 2005 debt exchange and on July 1, announced the results. A total of approximately $12.86 billion of eligible debt was tendered into the exchange that launched on April 30, 2010. The total amount tendered represented 69.5% of the debt eligible to be tendered.
The 2010 re-opening brings the total amount of debt restructured to 92.6% (the original 2005 debt exchange restructured 76.2% of Argentine government debt in default since 2001). The final settlement of the 2010 debt exchange took place on August 11, for bondholders that didn't participate in the early tranche that closed on May 14 and settled on May 17.
As of 2012 holders of 6% of the debt continued to hold out, including US$1.6bn-worth held by Paul Singer's Elliott Management Corporation. In October 2012 the sail training ship ARA Libertad of the Argentine Navy was seized under court order in Ghana at Singer's request. in October 2012 Argentina's theoretical borrowing costs were 10.7%, double the average for developing countries., although Argentina has not raised money on the money markets since the default, and the state-owned oil company YPF has already placed debt in the financial markets to finance its investment programme in years to come.
Read more about this topic: Argentine Debt Restructuring
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