The investment funds that are creditors of YPF are the same that predominate in the majority of corporate and sovereign debts: Blackrock, Fidelity, Oak Tree. They are financial giants who put tokens in companies around the world, where they can win or lose, depending on the returns.
Although they are represented in law firms specialized in these matters, there is an argument that circulates there. When YPF issued its negotiable obligations (ONs), it issued a prospectus in which it set its payment conditions. There it reads “YPF agrees that beyond any restriction or prohibition on access to the exchange market (Mercado Unico y Libre de Cambios) in Argentina, some and all payments of the Obligations in this writing will be made in US dollars” .
On the funds to trade, Blackrock was decisive in the restructuring of the Argentine debt. The Minister of Economy, Martín Guzmán, could only celebrate when he had the acquiescence of the directors of that firm.
Regarding Fidelity, is another great with whom almost nobody wants to be faced. Any company that is formed and wants to raise capital goes and knocks on different doors. Fidelity’s is one of the first, since it is an investment fund with a vast portfolio.
There is more than 15 funds that have debts from YPF. There are two committees of creditors. Sometimes they agree on their strategy. However, a retail investor says that the very rules agreed by YPF when it issued NOs prevent it from doing the restructuring it is seeking.
“Nothing in the Negotiable Obligations and the deed may impede some of the rights of the creditors of these ONs or their ‘trustee’ (delegate) or that justifies YPF to refuse to make payments under these ONs and the deed in dollars for any reason so be it, including -without limits- some of the following ”, says the issue of NOs.
Among the characteristics that should not prevent YPF from paying, is that the purchase of dollars becomes more ‘onerous’ or ‘burdensome’ for YPF (…), that the exchange rate in Argentina rises significantly with respect to the date on which it was agreed, the company communicated when it asked the markets for money.
“YPF you waive your right to invoke any defense of inability to pay, impossibility of paying in dollars or defenses principles or similar ”, wrote the lawyers of YPF.
In statements, YPF creditors let it be known that they will reject the changes promoted by the company. But there was growing speculation about some new “last minute” offer. CEO Sergio Affronti was reviewing the issue over the weekend with CFO Lew.
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source https://pledgetimes.com/the-funds-that-define-the-fate-of-the-oil-companys-debt/
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