The decision was formalized by Judge Loretta Preska and will be executed tomorrow. The North American Supreme Court had enabled him in January. It also froze other US $ 100 million.
The judge Loretta Preska He authorized the embargo of U $ S210 million corresponding to the collateral of the Brady bonds. In addition, it ordered the freezing of other US $ 100 million until Attestor Master and Bainbridge Fund, two groups of debt creditors in default, resolve their dispute over those funds.
This measure adds to the recent execution of a guarantee for US $ 325 million in the case of the PBI coupon in London, increasing the pressure on Argentina in international courts.
The background of the measure
The creditors, known for their Holdouts position since the Default of 2001, have managed to obtain favorable failures to seize assets from Argentina, because they did not receive payments in the debt restructuring processes. In this case, Attestor Master is entitled to US $ 460 million, and Bainbridge Fund, over US $ 100 million. The US Supreme Court rejected in January the appeal filed by Argentina, which left the order of embargo from Judge PRell.
The conflict involves the Argentine assets linked to the collateral of the Brady bonds, which had been delivered as a guarantee for the payment of the restructured debt in the 90s. In 2023, Argentina culminated the payment of their obligations, which released certain assets. However, the recent dispute has resulted in new embargoes, adding more pressure on the country.
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Although other funds, such as Bainbridge Fund, tried to expand the embargo, Judge Pruk only authorized the freezing of US $ 100 million. As for the funds involved, such as Attestor Master, Trinity Investments, and Bison Bee LLC, these are Argentine debt holders that did not participate in the exchanges made by the country in 2005, 2010 and 2016, and who now seek to recover their investment Through the seizure of assets of the Argentine State.
This new embargo to the Argentine assets highlights the persistence of the holdouts in their fight to collect unpaid debt from the Default of 2001. The decision of Judge PRell, added to the rejection of the appeal of Argentina by the Supreme Court of the USA. UU., Reinforces the pressure on the country in a complicated economic context.
Despite the efforts to free the collaterals of the Brady bonds, the creditors continue to advance in their claims, which shows that the consequences of the default still persist more than two decades later. This scenario raises new challenges for Argentina, which must face a prolonged legal dispute while seeking to stabilize its economy.
Source: Ambito
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