1-nil to Germany but we're through! I'm going to be on the Jersey Shore next Tuesday at 4:00 p.m. with a beer in hand and probably a few already down the shoot ready to take on Belgium. For Club and Country Lads! Wonder if the Germans gave us any advice? Keep the right wing strong? The last man must brush the Channel with his sleeve? Probably not.
In the mean time, the Argies continue to be just wonderful to bloggers. Yesterday the managed to ship a bundle of money to the payment agent, Bank of New York/Mellon with instructions to pay the restructured bond holders what they were due. "Thank you God, so bloody much," said Bank of New York as this action placed them squarely in the middle where they don't want to be. There is no way they can make this payment in the face of the court order and today the good Judge told them that there is no way they can make this payment in the face of his order. I swear, if it wasn't there for all to see I'd pay cash money to get a peek at this thing. Meantime, while this was bubbling up, the court appointed Daniel Pollack, senior counsel at McCarter and English and one of the nation's premiere trial lawyers in the field of financial litigation to arbitrate the case. And so I ask: who the hell is Daniel Pollack? Aside from winning a big case involving the Investment Act of 1940 about which nobody in the country knows anything and if they do it's not good, I'm not sure that the learned counsel owns a passport in the sense of this situation. Now Judge Griesa hasn't made many mistakes, but I have a suspicion that the parties know each other well enough and it is not the law, nor the attorneys but the client which is driven by politics and basic Argentine insanity, which is preventing a rational decision from being reached. Mr. Pollack sounds like a brilliant guy and I am sure Judge Griesa has the greatest confidence in him but neither of them have any idea what the learning curve is like when dealing with the Gauchos. Good luck to him.
Anyway, Monday the 30th. is coming and somebody better pull a rabbit out of a hat otherwise what I suspect is a 30 day grace period before a default is formally declared begins to run. Now interestingly, the court did declare today that it has no jurisdiction over payments made of Argentine debt regarding Peso-denominated instruments. Those, apparently, will be made. Remember what I said the other day? I'm sure Peso payments would go down very well, but what precise remedies are available to the court to prevent these from occurring if agreed? Tell the creditor NOT to accept payment? I don't think so. Of course it could be argued that the acceptance is in violation of the court order which creates a cause of action allowing EMC to go after all the creditors individually, but do you really want to go there? And if you can get the creditors to agree to that, perhaps you could you get them to agree to accept just interest payments and forgo principal for the foreseeable future? Hedge funds don't like that. Of course I'm just wildly speculating because the more scenarios, the more material, and I figure I'm good with this story until Christmas. Sure make a boy's life easier. Wonderful stuff, just wonderful.
As I said, on the Right Coast next week but I'll be in and out. Stay tuned
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