For Immediate Release
Monday Deadline Approaches for Holdout Hedge Fund – NML Capital – to Respond to Argentina Payment Plan in Landmark US Appeals Court Decision
Religious Community Supports Argentina’s Payment Plan that Would Protect Poor
WASHINGTON - Monday, April 22, 2013 is the deadline that judges in the 2nd US Circuit Court of Appeals have given holdout hedge funds, commonly referred to as “vulture funds,” – including NML Capital, to respond to Argentina’s payment plan. This court-ordered payment plan that Argentina outlined would give holdout creditors virtually the same deal that 93 percent of creditors took in 2005 and 2010 debt swaps. This is the next step in the landmark case between NML Capital and Argentina that started in 2001 when the fund purchased cheap Argentine debt on secondary markets during the nation’s default on $81 billion. Since then, the fund has rejected restructuring deals and have sued Argentina to collect.
Eric LeCompte, Executive Director of Jubilee USA Network, a religious antipoverty organization, releases the following statement:
“The religious community is deeply concerned about how this court case would affect the global poor. These hedge funds operate by making profits off of poor countries and countries in economic recovery. Argentina’s payment plan would make it harder for this predatory behavior to hurt nations in the developing world.
“NML Capital shouldn't get a better deal than 92 percent of other creditors. NML will still make a profit with Argentina’s payment plan, but it will be harder for them to exploit countries facing financial stresses.”
Jubilee USA Network is an alliance of more than 80 religious denominations and faith communities, human rights, environmental, labor, and community groups working for the definitive cancellation of crushing debts to fight poverty and injustice in Asia, Africa, and Latin America.