Grazie, Italia.
That’s what Argentine President Cristina Kirchner should say to Italian bondholders who have jumped into her battle with hedge fund mogul Paul Singer.
On Monday, a group of holdout bondholders, led by Singer’s Elliott Management, asked an appeals court to reject a brief submitted by the Italians, who also refused to accept a steep haircut when Argentina restructured its debt several years ago.
The Elliott group — which is demanding full payment — wants the country to pay it each time it makes a payment to the bondholders who agreed to the debt exchanges. In its petition, the Italians argue that all holdouts should be paid when Elliott is paid.
Yesterday, Argentina seized on the Italians to reiterate what it has long been arguing: This case is not just about the $1.43 billion that is owed to the Elliott group.
If the court agrees with Elliott’s proposal that Argentina pay it each time it pays the restructured bondholders, that “could open the floodgates for over $15 billion in similar . . . claims,” Argentina wrote the court yesterday.