On Monday’s night, Blackrock and 29 other allied investment funds challenged the Argentine government through a letter to Economy Minister Martín Guzmán, whom they warned to have sufficient holdings to block the debt swap process.
Thus, the Ad Hoc Group, the Exchange Group and the Creditors Committee of Argentina ensure that their holdings and those of their associates reach 51% of the securities issued during the government of Mauricio Macri and 60% of those that had already been included in the 2005 and 2010 exchanges. If true, the percentage would be above the 50% target set by the national government for the ongoing exchange. The statement signed by the world’s largest fund and 29 other creditors came days after Alberto Fernández’s government noted that it has no room to improve the economic terms of the offer made on July 6, although it opened the door to introduce legal modifications.
For their part, the signatory creditors reaffirmed the counterproposal made to Argentina on 20 July and called for a “consensual resolution”. In a so-called “Letter of Support of the Joint Debt Restructuring Proposal”, addressed to Guzmán, the three toughest groups of bondholders in the negotiations claimed that they are holders or advisers of holders of up to 36% of Argentine bonds in circulation included in the exchange.
Creditors noted that “when these figures are combined with other holders who have pledged their support for the Joint Proposal but cannot be appointed for institutional reasons, they represent up to 60% of those holdings.”
Finally, they cautioned: “We are confident that a consensus resolution will provide a path to even greater and more sustained investment in Argentina’s growth sectors, including agribusiness, energy, mining, infrastructure and information technology, and a bright and sustainable economic future for the people of Argentina.” The list of signatory investment funds:
AllianceBernstein
Amia Capital LLP
Amundi Asset Management
Aquila Asset Management ZH AG
Ashmore Investment Advisors Limited
Ashmore Investment Management Limited
Autonomy Capital (Jersey) L.P.
Ayres Investment Management LLP
BlackRock Financial Management, Inc. and its affiliates
BlueBay Asset Management LLP
Caius Capital LLP
Carronade Capital Management, LP
Contran Capital Management L.L.C
Dumont Global
Farallon Capital Management, L.L.C.
Fidelity Management & Research Co.
GoldenTree Asset Management
Grantham, May, Van Otterloo & Co. Llc
HBK Investments L.P.Invesco Advisers, Inc.
Mangart Capital Management Ltd
Monarch Alternative Capital LP
Paloma Partners Management Company
Pharo Management (UK) LLP
T. Rowe Price Associates
Vega Asset Management
VR Advisory Services Ltd
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