Argentina's Kicillof to lead debt delegation to NY

AP News
Posted: Jul 06, 2014 10:48 PM

BUENOS AIRES, Argentina (AP) — Argentina's economy minister will meet with a court-appointed negotiator on Monday aiming to resolve a long dispute with U.S. holdout creditors, the economy ministry said on Sunday.

Economy Minister Axel Kicillof will lead Argentina's delegation to meet Daniel A. Pollack in New York. Pollack is presiding over negotiations between representatives of Argentina and U.S. bondholders aimed at resolving the conflict over $1.5 billion in debt. The holdout funds will not be part of the meeting.

Argentina needs to strike a deal before the end of the month with the holdouts if it is to avoid a default. The holdouts rejected debt swaps after Argentina's record $100 billion default in 2001-2002.

President Cristina Fernandez has long refused to negotiate with the plaintiffs led by New York billionaire Paul Singer's NML Capital Ltd., who spent more than a decade litigating for payment in full rather than agreeing to provide Argentina with debt relief.

Argentina was forced to the negotiating table after the U.S. Supreme Court rejected its appeals of a lower court ruling that ordered the country to make payments on the debt. U.S. District Judge Thomas Griesa has also said it would be illegal for Argentina to make a payment to other bondholders without paying the holdouts.