Its international bonds, $95 billion worth.
They restructured those, essentially paying people $.30 on the dollar.
92% of the bondholders accepted.
In the 8%, a couple of hedge funds decided they wanted to get paid in full.
They sued the argentines.
In u.s. court, they have won on the argument that a clause called equal treatment means they can't be treated any differently from any other bondholder if they are owed a certain amount of money.
They still hold the old bonds.
They claim they have to be paid.
It could be about $15 billion to the people who are suing.
Argentina says it won't comply.
They've given mixed messages.
Initially, they said they wouldn't comply and they said the u.s. court has no jurisdiction.
In their last filing, they said they might comply.
There have been some hints they might want to negotiate with these holdouts, see if they can lower the costs.
They will owe $13 billion in a bond payment at the end of june.
If they don't pay that, then they might have to default him a if they don't pay the outstanding bondholders at the same time they make that payment -- have to default if they don't pay the outstanding bondholders at the same time they make that payment.
- -- they claim the argentines have the money.
The argentines say they don't. if you print money, that leads to higher inflation.
That is hard on the argentine people.
There is a problem for the rest of the world.
The next country that wants to go into default and restructure its bonds, who is going to talk with them if you feel like you can hold out and get paid in full at the end?
Thank you.
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Former clinton national