The Argentine Debt Restructuring Of Argentina

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The Argentine debt restructuring is a process of debt restructuring by Argentina which began on January 14, 2005, and allowed it to resume payment on the majority of the USD 82 billion in sovereign bonds that defaulted in 2002 at the depth of the worst economic crisis in the nation 's history. A second debt restructuring in 2010 brought the percentage of bonds, out of default, to 93%, though ongoing disputes with holdouts remained. Bondholders who participated in the restructuring, accepted repayments of around 30% of face value and deferred payment terms, and began to be paid punctually; the value of their bonds also began to rise.The remaining 7% of bondholders later won the right to be repaid in full. As part of the restructuring process, Argentina drafted agreements in which repayments would be handled through a New York corporation and governed by United States law. The holdout bondholders found themselves unable to seize Argentine sovereign assets in settlement, but realized that Argentina had omitted to provide for holdout situations and had instead deemed all bonds repayable on pari passu (equal) terms that prevented preferential treatment among bondholders. The holdout bondholders therefore sought, and won, an injunction in 2012 that prohibited Argentina from re-paying the 93% of bonds that had been renegotiated, unless they simultaneously paid the 7% holdouts their full amount due as well. Together with the agreement 's Rights Upon Future Offers ("RUFO") clause,
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