A Review of the Nigerian Energy Industry

Argentina’s YPF ‘shrugs off default embargo threat’

YPF, Argentina24 June 2014, News Wires – Argentina state oil company YPF has claimed its assets are those of an “independent company” and are safe from creditors seeking full payment from the nation’s 2002 bond default in US courts, according to a report.

The 2nd US Circuit Court of Appeals ruled on Wednesday that Argentina could not continue to pay creditors who agreed to restructure their bonds after its 2001-02 default on $100 billion in debt unless it also paid $1.33 billion to the holdouts demanding full payment, Reuters reported.

“YPF is an independent company and is governed as such in accordance to law,” the oil firm told the news wire.

“Its assets don’t belong to the Republic of Argentina, and as such cannot be embargoed by the Republic of Argentina’s creditors.”

President Cristina Fernandez said on Friday her government would negotiate with all of Argentina’s creditors in a bid to avoid a new debt default that would further weaken the country’s ailing economy.

Her government had threatened on Wednesday that it could default on its debt, saying it could not afford to make its next bond payment, due on 30 June, if it had to pay the holdouts as well as the owners of its restructured bonds.

The holdout creditors are led by NML Capital Ltd, a division of billionaire Paul Singer’s Elliott Management Corp, and Aurelius Capital Management, chaired by Mark Brodsky.


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