NY appeals court taking closer look at Argentine swap offer to resolve debt showdown

BUENOS AIRES, Argentina – A New York court has ordered Argentina to explain how it would issue new bonds rather than comply with a $1.3 billion cash judgment to resolve debts unpaid for more than decade.

Two days after the oral hearing in NML Capital Ltd. vs Argentina, the appellate judges asked just how, when and at what interest rate Argentina would pay installments on these new bonds.

President Cristina Fernandez has said she’ll never pay the plaintiffs she calls “vulture funds.” The compromise offer of a new debt swap was floated months ago by Economy Minister Hernan Lorenzino, who said Argentina would pay no more than the same terms 92 per cent of Argentina’s defaulted debt holders accepted in two previous debt swaps.