Argentina’s Fernandez reassures creditors with ‘no haircut’ talk By Reuters



By Adam Jourdan and Rodrigo Campos

BUENOS AIRES/NEW YORK (Reuters) – Argentina’s presidential front-runner Alberto Fernandez said that if elected next month, he would aim to avoid haircuts on bond payments and seek a moderate “Uruguay-style” debt restructuring, music to the ears of the country’s creditors.

Investors are closely watching Fernandez’s comments on debt after the South American nation was forced to announce plans to renegotiate around $100 billion in bonds after a sharp market crash in August pushed the country toward default.

The Peronist candidate, who soundly beat market-friendly incumbent President Mauricio Macri in an August primary, is the favorite to win the Oct. 27 general election. How his administration will handle the debt crisis is one of the key questions for the country and its local and global backers.

“Hearing Fernandez refer to a Uruguay-style re-profiling is a very positive thing,” said Roger Horn, senior emerging market strategist at SMBC Nikko Securities America in New York, adding that most investors were braced for some sort of loss.

“It at least shows a market-friendly intention.”

Fernandez, in comments posted on Twitter late on Thursday, said debt was Argentina’s “biggest issue,” but that the country – in recession for much of the last year – would meet its obligations in full if given time to revive growth.

“We never said we wouldn’t pay or that there would be a haircut,” he wrote. He aimed criticism at Macri’s administration for taking on too much debt.

“We will pay the debts by growing and exporting… The only way is to export. The other channel has been exhausted, which is to borrow,” he said.

In separate comments at an event in Cordoba, he said Argentina should be able to replicate the model of neighboring Uruguay, which successfully undertook voluntary debt renegotiations in 2003 and is widely seen as a positive model.

By contrast, in 2005 and 2010, under a prior Peronist government, Argentina pushed bond holders to take a massive ‘haircut’ that hurt its reputation on financial markets and sparked a multi-year battle with ‘holdout’ creditors.

BONDS RALLY

Credit Suisse (SIX:) said in a note on Friday that Fernandez’s comments were decent news for the country’s creditors.

“We think that Fernandez’s remarks regarding paying debt without a haircut, along with his track record, suggest that he could pursue a moderate economic policy course if elected,” the investment bank said.

The country’s over-the-counter bonds were up an average of 1% by early afternoon local time, traders said.

Argentina’s century bond traded up nearly one cent at 43.15 cents on the dollar according to MarketAxess data, while the January 2028 benchmark rose more than a cent to trade at 41.15 cents, both on small trading volumes.

Credit Suisse added, though, that how Fernandez would achieve his goals of spurring growth while maintaining fiscal discipline under a $57 billion credit facility struck with the International Monetary Fund last year remained “unclear.”

Marshall Stocker, a portfolio manager at U.S.-based investment management firm Eaton (NYSE:) Vance, was also skeptical.

“We are headed on a path to restructuring and the asset prices reflect this,” he said. Fernandez plans to raise wages and fix prices were “mutually exclusive” with aims to steady the currency and inflation, he said.

“He can’t do everything he and his team suggests they’re going to do. That’s why it’s so difficult to determine how extensive the (debt) reprofiling will be.”



Venezuela’s creditors call for Guaido to discuss debt renegotiation framework By Reuters


© Reuters. Session of Venezuela’s National Assembly in Caracas

By Brian Ellsworth and Mayela Armas

CARACAS (Reuters) – Creditors holding Venezuelan debt on Tuesday pushed back on debt restructuring plans backed by opposition leader Juan Guaido, urging a “fair and effective” framework for talks and improved communications with investors holding defaulted bonds.

The main committee of Venezuela creditors said it opposed requests for a U.S. executive order that would prevent asset seizures by investors and disagreed with a proposal to give different treatment to debts owed to Russia and China.

But the statement added that restructuring would not begin until the end of a “humanitarian crisis,” in reference to the hyperinflationary collapse overseen by President Nicolas Maduro that has fueled malnutrition and disease.

“A new government should work with creditor parties, such as the Committee, to agree on the design of the restructuring process and to negotiate the financial and other terms of the restructuring,” the statement said.

Guaido in January cited articles of the constitution to assume an interim presidency after calling Maduro’s 2018 election a fraud, quickly winning recognition by more than 50 countries including the United States.

Maduro’s government, which continues to exercise power thanks to the loyalty of the military, has failed to pay creditors some $11.4 billion in principal and interest since 2017, according to the creditors.

Jose Ignacio Hernandez, Guaido’s overseas legal representative, did not immediately respond to a request for comment.

‘TOO EARLY’

The proposal could help improve communication for a future restructuring, but any serious talks cannot take place until a new government assumes power, said Shamaila Khan, director of emerging market debt at AllianceBernstein in New York.

“It is too early to start discussing a restructuring considering (a new) government is still not in place,” said Khan in a telephone interview.

Investors say Maduro is not a serious negotiator because his government has few resources to offer in a restructuring and his promises likely cannot be trusted given the ruling Socialist Party’s frequent disregard for property rights.

U.S. sanctions also prevent most investors from dealing with him; state oil company Petróleos de Venezuela, S.A., or PDVSA [PDVSA.UL]; and the central bank.

Maduro blames U.S. sanctions and an opposition-led “economic war” for the country’s problems.

The creditor committee opposed requests by Guaido and his allies for an executive order by the White House that would block creditors from seizing U.S. refiner Citgo Petroleum Corp, which is owned by PDVSA.

“An executive order issued by the US government that undermines good faith negotiations would not further the long-term interests of Venezuela or its stakeholders,” the statement said.

The group instead recommended that Venezuela pass a restructuring law that could be recognized under the U.S. bankruptcy code, in order to “provide an effective mechanism for preventing disruptive litigation.”

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Liquidators of Hacked Cryptopia Exchange Release Report, Note $4.2M Owed to Creditors By Cointelegraph



The liquidators of now-defunct New Zealand crypto exchange Cryptopia have released the first report on the state of affairs of the firm, according to the documents published on May 31.

Cryptopia’s recently assigned liquidator, Grant Thornton, has released an estimation statement of the financial state of the firm, reporting that the hacked exchange owes a total of $4.22 million to its creditors.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. Resists Guaido’s Request to Shield Venezuela From Creditors By Bloomberg


© Bloomberg. Juan Guaido Photographer: Carlos Becerra/Bloomberg

(Bloomberg) — The U.S. is unlikely to grant a request from the Venezuelan opposition for an executive order protecting the nation’s assets from creditors, according to people familiar with the matter.

That means National Assembly President Juan Guaido, who’s recognized as head of state by the U.S. and more than 50 countries, will need to make a critical bond payment by the end of this month to ensure that investors don’t try to seize Citgo. The Houston-based refining company, owned by state-run Petroleos de Venezuela, was put up as collateral on the note.

President Donald Trump wants to tread carefully and not get too involved in the opposition’s economic agenda, according to people familiar with the administration’s plans who requested anonymity to discuss internal deliberations. With Venezuela behind on more than $10 billion in bond payments, and struggling to keep up with loans from China and Russia, potential asset seizures by creditors are a looming issue as the U.S. seeks to help Guaido’s allies establish a new government and restore economic growth.

A Treasury Department spokesman declined to comment on future actions. PDVSA and Carlos Vecchio, Guaido’s U.S. envoy, didn’t respond to requests for comment.

An ad-hoc PDVSA board appointed by the opposition-led legislature has said it will make the $71 million interest payment on PDVSA’s 2020 bonds, though it will be doing so “in protest” because it considers the debt illegitimate. Indeed, Guaido’s allies were seeking the asset-protection order to avoid having to transfer the money to investors.

Vecchio requested the order in a March letter to the National Security Council, saying it would allow the administration to focus on a peaceful transition of power and resolving a complex humanitarian emergency while avoiding the distraction “of costly, time-consuming enforcement litigation” in the U.S.

Vecchio recommended a measure similar to Executive Order 13303, which was deployed in Iraq after the 2003 invasion to prevent investors from seizing local assets.

The Trump administration probably wouldn’t take an asset protection order seriously until Nicolas Maduro leaves power, according to Cecely Hugh, investment counsel in emerging-market debt at Aberdeen Standard Investments in London. She expects Guaido’s team to come through with the PDVSA 2020 bond payment.

“It would make sense to keep control of Citgo,” she said. “I think their intention is to pay.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Asiana Airlines creditors to come up with financial support plan by April 25: KDB By Reuters


© Reuters. FILE PHOTO: An Asiana Airlines Boeing 747-400 taxis at San Francisco International Airport

SEOUL (Reuters) – Creditors of Asiana Airlines aim to come up with a financial support plan for the debt-laden South Korean carrier by April 25 to help relieve its liquidity problems, the chairman of its main creditor, Korea Development Bank, said on Tuesday.

KDB Chairman Lee Dong-gull also told a briefing the creditors plan to sign a preliminary deal on the support measures in late April or early May.

Kumho Industrial, the top shareholder of Asiana, said on Monday that it plans to sell its entire 33.5 percent stake, worth 500 billion won ($440.08 million) at the closing price, as the cash-strapped airline seeks creditor support.

Lee said it is “desirable” that Asiana should also sell its units, which include two budget carriers, Air Busan and Air Seoul.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Coordinator for Largest Group of Mt. Gox Creditors Leaves Post, Sells His Claim By Cointelegraph



Andy Pag, the founder and coordinator of Mt. Gox Legal (MGL) — the largest group of creditors of the now-defunct (BTC) exchange Mt. Gox — has quit his post and decided to sell his claim. Pag announced his decision in a letter posted to the MGL contributor forum on April 4.

Mt. Gox Legal — a cooperative of over 1,000 creditors with claims reportedly totaling more than an estimated 125,000BTC (~$649 million at press time) — was formed to seek coordinated legal action to support Mt. Gox’s transition from bankruptcy proceedings to civil rehabilitation (CR).

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Mt. Gox Creditors to See Reimbursement Decision Within Days By Cryptovest


© Reuters. Mt. Gox Creditors to See Reimbursement Decision Within Days

Those affected by the Mt. Gox crash may see a decision on a reimbursement scheme “within days”, revealed the Mt. Gox appointed trustee Nobuaki Kobayashi in a recent statement.

The Mt. Gox crash in early 2014 took away as much as 744,000 (BTC), of which some may still be held in secure wallets. However, some of the holdings were sold by Mr. Kobayashi, as late as the summer of 2018, before a new drive to seek redress for the creditors.

Mt. Gox crashed during the first more significant peak for BTC prices, when the asset broke above $1,000 for the first time, but then went on to lose most of its value. In the intervening years, BTC went up to a record bull run with prices above $19,600, later sliding …

This article appeared first on Cryptovest

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



British outsourcer Interserve taken over by its creditors By Reuters


© Reuters. FILE PHOTO: Interserve offices are seen in Twyford

By Iain Withers and Justin George Varghese

LONDON (Reuters) – Interserve, one of the British government’s biggest contractors, was placed in administration late on Friday and immediately taken over by its lenders only hours after shareholders rejected a rescue plan for the debt-laden company.

The public services provider employs 68,000 people globally, including 45,000 in Britain, to clean schools and hospitals, run probation services and build roads and bridges but has been battling to avoid being consigned to the same fate as collapsed rival Carillion.

EY was appointed as administrator with Interserve’s assets then moving immediately to a newly incorporated company to be controlled by the group’s lenders, thereby wiping out existing shareholders.

It is “business as usual for employees, customers, suppliers, and other stakeholders”, Interserve said, but it did not comment on whether the management team will remain unchanged.

A spokesman for the Cabinet Office, which oversees government contracts, welcomed Friday’s developments.

“It brings the company the stability required for it to compete for future business and continue to deliver good value public services for the taxpayer,” the spokesman said.

The takeover by the company’s creditors failed to deflect criticism, however, with fresh questions raised about the resilience of Britain’s outsourcing sector a little more than a year after Carillion fell into liquidation.

“Financial models adopted by these large outsourcers pose an ever-present and potentially very damaging risk to their supply chains,” said Rudi Klein, CEO of Specialist Engineering Contractors’ Group, which employs a number of subcontractors for companies such as Interserve.

“Following Carillion’s collapse, it was generally assumed that there would be a radical reappraisal of the public sector’s approach to construction/infrastructure procurement,” Klein added. “This hasn’t happened”.

‘FAILED MODEL’

Interserve ran into difficulty after a string of ill-advised acquisitions and loss-making contracts, but other British service providers have been hit in recent years after taking on work during the financial crisis at low prices for long contracts that have also proved problematic for groups including Capita and Mitie.

Britain’s biggest labor union Unite, which represents more than 1,700 Interserve employees and is the largest union at the company, said it was seeking an urgent meeting with administrators.

“Once again we have seen the government’s outsourced model fail,” said Colenzo Jarrett-Thorpe, Unite’s national officer. “The government has been asleep at the wheel since Carillion’s collapse last year and if no action is taken we face further corporate collapses.”

The GMB union, which also represents Interserve workers, called for an end to the “disastrous experiment” of outsourcing.

“Shambolic mismanagement is putting jobs on the line and services in jeopardy. Our public services can’t go on like this,” the GMB said in a statement.

Tony Williams (NYSE:), a construction analyst at Building Value, said there was nothing wrong with outsourcing, but the likes of Carillion and Interserve had squandered too much cash on misguided and expensive acquisitions.

INVESTOR FALLOUT

A debt-for-equity rescue package proposed by the company’s lenders at a general meeting in Central London was opposed by 59 percent of Interserve’s shareholders.

The plan would have handed Interserve’s lenders 95 percent of the company in exchange for cancelling 485 million pounds ($642 million) of its debts, with existing investors’ holdings diluted to 5 percent.

Interserve said on Friday that a transaction was being implemented that would achieve broadly the same outcomes by exchanging the same level of debt for shares and injecting 110 million pounds of additional liquidity.

The company’s lenders include RBS (LON:), HSBC, BNP Paribas (PA:) and hedge funds Emerald and Cerberus.

Glyn Barker, Interserve’s chairman, warned against forcing it into administration ahead of Friday’s shareholder vote, arguing it would be more disruptive and costly and wipe out all shareholder value.

Interserve’s largest shareholder, U.S. hedge fund Coltrane, which owns a 28 percent stake, had opposed the rescue plan after Interserve rebuffed an alternative proposal as unworkable.

A representative for Coltrane at the general meeting declined to comment on the situation, other than saying “I voted for Donald Trump” when asked how the firm had voted.

Interserve shares were heavily shorted heading into the vote, with hedge funds owning more than a third of Interserve stock, data from Refinitiv showed.

The brokerage arms of two leading investment banks – Goldman Sachs (NYSE:) and JPMorgan (NYSE:) – which can help funds bet against a company, were among the top 10 holders.

At the close of trading on Thursday, two hedge fund firms – Brightsphere Inc and Millennium International – had short positions in Interserve greater than 0.5 percent, Financial Conduct Authority data showed.

($1 = 0.7555 pounds)



Greek Creditors Talk Up Reform Drive But Withhold Fresh Cash By Bloomberg


© Reuters. Greek Creditors Talk Up Reform Drive But Withhold Fresh Cash

(Bloomberg) — European officials sought to quell fears Greece is going off track just months after its bailout ended, talking up the country’s reform drive even though Athens has yet to fulfill the conditions attached to the disbursement of some 1 billion euros ($1.1 billion) in debt-relief aid.

The decision to withhold the cash was taken at a meeting of euro-area finance ministers in Brussels on Monday, marking the delay of the first post-bailout payment the country is set to receive as part of a deal struck last year with its European creditors to ease its debt load.

Yet despite the holdup, ministers played down the foot-dragging and voiced optimism that the outstanding overhauls will soon be completed, allowing for the funds to be disbursed when they next meet in April.

“Overall there has been very good progress,” said Mario Centeno, the Portuguese finance minister who presided over the meeting with his counterparts. “If all reform commitments are met, the Eurogroup will consider in April the implementation of further debt relief measures.”

Although Greece exited its international bailout last summer, it still needs to undertake overhauls in exchange for semi-annual disbursements of cash until mid-2022, money that’s to be used by the euro area’s most-indebted nation to ease the refinancing of its burden.

Insolvency Law

Greece has so far completed 13 of the 16 reforms it has to undertake in exchange for the first tranche of post-bailout payments. But the key issue making creditors withhold the disbursement is the government’s proposed legislation on the protection of homeowners’ primary residence from foreclosure, which EU officials said is too generous.

The legislation goes to the heart of what many officials see as a key source of Greece’s problems: a problematic payment culture that weighs on the balance sheets of already-strained banks.

Other open issues have to do with the sale of lignite plants and a motorway, and delays in the clearance of arrears, an EU official said.

While Greece doesn’t face a liquidity crunch, the holdup in the disbursement could signal to markets that the country’s reform-drive is waning ahead of an election later this year. Still, investor appetite for Greek assets seems to have improved. Moody’s Investors Service on March 1 raised Greece’s sovereign credit rating two steps to B1, although that’s still four levels below investment grade.

Crucially, Greece marked a milestone in its recovery from a bruising financial crisis after agreeing to sell 2.5 billion euros of 10-year bonds for the first time in nine years. Prime Minister Alexis Tsipras, facing a general election this year that polls show he’s set to lose, has pointed to bond sales as proof the country has turned a corner after its economy shrank by about a quarter during the crisis.

Tsipras’ government has been slow to implement the agreed measures and taken some policy decisions — including an increase in the minimum wage and proposed subsidies for mortgages — that have spooked creditors. This has given rise to questions on whether the holdups are part of reform fatigue or — more crucially — a political choice that spells out further fiscal profligacy.

(Updates with comments from Centeno in fourth paragraph.)

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



‘GoxRising’ Movement Aims to Reboot Mt. Gox Exchange, Make ‘Gox Coin’ for Creditors By Cointelegraph


© Reuters. ‘GoxRising’ Movement Aims to Reboot Mt. Gox Exchange, Make ‘Gox Coin’ for Creditors

A new movement dubbed “GoxRising” is calling for a new, accelerated rehabilitation plan for creditors of the now-defunct (BTC) exchange Mt. Gox, with the long-term goal of rebooting the trading platform. The development was reported in an interview with its author, controversial industry figure Brock Pierce, by TechCrunch Feb. 7.

As previously reported, roughly 24,000 creditors are thought to have been affected by Mt. Gox’s 2011 hack and subsequent collapse in early 2014, which resulted in the loss of 850,000 BTC valued at roughly $460 million at the time.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.