Ad Hoc Group of Argentine bondholders adds members
A group of more than 20 asset managers that manage in aggregate nearly $7 billion of Argentina’s sovereign bonds resulting from the 2005 and 2010 bond exchanges have come together as an Ad Hoc Group (the “Ad Hoc Group”) to negotiate a consensual inter-creditor resolution with the holders of non-restructured bonds to end the decade-old standoff stemming from Argentina’s 2001 default and subsequent restructurings of its debt. The Ad Hoc Group is being led by a steering committee of several asset managers (the “Lead Committee”).
The Ad Hoc Group has retained Linklaters LLP as its legal advisor and is exploring the engagement of other advisors. The Lead Committee is actively working with Deutsche Bank and is in the process of formalizing an engagement with Deutsche Bank for it to advise the Lead Committee in connection with the structuring of an inter-creditor transaction.
"For the Ad Hoc Group to have the backing of close to 30% of the outstanding Argentine Exchange Bonds without a financial advisor or any formal outreach program demonstrates there is a groundswell of support to reach a solution to this decade old problem,” said Marty Flics, one of Linklaters’ lead partners on the matter, adding, "I am extremely confident that with the hiring of a financial advisor and as we begin proactively reaching out to institutional investors, we will far exceed the critical mass required to take this process to the finish line."
Linklaters LLP is a leading global law firm, supporting clients in achieving their strategies wherever they do business, using its expertise and resources to help clients pursue opportunities and manage risk across emerging and developed markets around the world. Linklaters has broad experience in Argentina and has advised on multiple transactions involving Argentine sovereign and quasi-sovereign entities, as well as corporations. Significantly, Linklaters advised the Global Coordinator and international joint dealer managers in Argentina’s sovereign debt restructuring in 2010.
For further information please contact Rita DeCaria on + 1212 830 9504.