Gramercy Advisors LLC

Gramercy Advisors LLC Rejection of The Argentina Exchange Offer

    Greenwich, Connecticut (ots/PRNewswire) - The following news release is being issued by Gramercy Advisors LLC:

    We have been asked for a reaction to Argentina's Exchange Offer that was made public earlier this week; an offer that we believe will fail to resolve Argentina's sovereign default. Gramercy, for the reasons outlined below, intends to reject the current offer, an offer that is really only Argentina's first official offer made to the market since Argentina defaulted on their obligations in December, 2001. We encourage other investors to follow suit.

    Simple points which compel Gramercy to reject Argentina's current exchange offer:

@@start.t1@@      1.  The offer is unilateral in nature. It is not a result of good faith
      2.  The offer is not consistent with Argentina's capacity to pay.
      3.  The offer is not consistent with market precedents.
      4.  The offer fails to properly recognize and value past due interest
      5.  The offer is Argentina's first real offer to creditors, hence it is
            just the beginning of negotiations not the end.
      6.  GCAB and its member organizations will remain in-place to represent
            creditor interests around the world.
      7.  Participating in the current exchange eliminates the possibility of
            higher recoveries.
      8.  The offer is not in accordance with Argentina's commitments under its
            IMF program.@@end@@

    Gramercy is on the steering committee of the US-based creditor group, Argentina Bondholders Committee "ABC" as well as the Global Committee of Argentina Bondholders, "GCAB." We will continue to work within these groups for deal enhancements sufficient enough to merit our participation in any such deal. We believe simple modifications of the transaction could be effected which would significantly alter the exit valuation of the deal. Absent of any such amendments, we will seek to recover the contractual amounts due to us through litigation and collection efforts. After having studied the exchange offer, Argentina's intended payment methods and well established precedents (Elliot vs. Republic of Peru, Pravin Banker vs. Republic of Peru and Elliot vs. Republic of Panama and others) we expect success in any such endeavor.

    One of the positives of the current exchange offer is that Argentina has now officially established a floor value for the securities of approximately 30-35% of principal face value. We interpret Argentina's current offer as an opening of negotiations rather than the completion. As such, we will be working diligently over the coming days and weeks to release a counter-proposal.

      Robert Koenigsberger
      Co-Managing Partner

    Web site:

ots Originaltext: Gramercy Advisors LLC
Im Internet recherchierbar:

Robert Koenigsberger of Gramercy Advisors LLC, +1-203-552-1952

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