NEW YORK, May 22, 2020 /PRNewswire/ -- The Ad Hoc Bondholder Group, advised by White & Case LLP, consists of international asset managers that collectively hold approximately $16.7 billion of Argentina's international bonds. The institutions in the Group include AllianceBernstein, Amundi Asset Management, Ashmore Investment Management Limited and Ashmore Investment Advisors Limited, Autonomy Capital, BlackRock Financial Management, Inc. and its affiliates, BlueBay Asset Management LLP, Fidelity Management & Research Co., Invesco Advisers, Inc., T. Rowe Price Associates, Inc., Western Asset Management Company LLC, and Wellington Management Company LLP.
On several occasions, the Group has publicly stated that it cannot support Argentina's current exchange offer because, among other reasons, the terms require the individual, main-street investors in mutual funds and ETFs; pension funds; insurance companies; and other organizations that hold Argentine bonds to bear disproportionate losses that are neither justified nor necessary. In an effort to find compromise, on May 15, the Group submitted a restructuring proposal to Argentina that would provide the country with substantial, front-loaded cash flow relief and remain consistent with the macro-fiscal trajectory articulated by the Government.
Yesterday, Argentina announced that it will extend for the second time its initial exchange offer, and the media has reported that Argentina will not be making the overdue interest payments on its bonds prior to the end of the grace period today. Although Argentina's failure to pay such interest will result in defaults across the various bond issuances, the Group understands that Argentina has expressed an intention to engage with creditors over the next week to try to find a comprehensive solution. The Group welcomes Argentina's expression of an intent to work with creditors, but actions speak louder than words. Over the last month, Argentina has had virtually no substantive engagement with its creditors.
The Group believes that the path to a transaction that is supported by creditors and that mitigates the impact of the impending bond default is through direct and immediate discussion among the parties, and the Group urges Argentina to engage in such discussions. The members of the Group remain ready and willing to engage with the Government in good faith, and are committed to finding a responsible solution to Argentina's current financial difficulties consistent with their fiduciary responsibilities to the millions of people that have entrusted them to invest on their behalf.
SOURCE White & Case LLP