Macroeconomy/Finance

Hedge funds lead by Monarch join forces for Argentina debt negotiations

Monarch Alternative Capital LP is spearheading a group of about 20 hedge funds advised by Dennis Hranitzky at law firm Quinn Emanuel Urquhart & Sullivan, which is getting organised ahead of debt restructuring talks with Argentina. The group is focused on notes that were part of the nation’s 2005 and 2010 debt exchanges which the Argentine government cannot modified in a broad debt restructuring unless with the consent of 85% of holders of the total principal amount outstanding, as well as 66.7% of holders of each bond involved in the deal, giving a relatively small number of investors the power to veto any accord they didn’t like.

Source: Bloomberg