Retail holders of Argentine debt untendered in the 2005 exchange say they will not accept a reopening of the deal at the terms apparently on the table. “We all didn't wait 8 years for this offer from a consortium of funds/banks, who bought at 15 cents and want out at 35,” Mark Botsford, a US-based retail bondholder, tells LatinFinance. “They have $7m max, and the Kirchner's will still be out the big money,” he adds, referring to the participation he expects, of $20bn outstanding. “We’ll evaluate the terms of this offer once they are known,” says Nicola Stock, president of Task Force Argentina (TFA), which represents over 180,000 Italian holders with $4.5bn in principal and an estimated $4.5bn in PDI. He adds that if, as reported last week, terms are worse than the first swap, Italian retail – which demands 100% principal – is highly unlikely to participate. Economy minister Boudou is on tape saying terms of the new restructuring will be more favorable for the country than the 2005 deal. A haircut on principal in default of at least 65% is apparently the target, and there will be a new cash component, with Argentina seeking to raise about $0.10 for each $1.00 worth of defaulted bonds investors tender. Boudou told local reporters he aims to pay single-digits on the new issue. Stock adds that neither the debtor nor its advisors – Barclays, Deutsche and Citi – had contacted his association. “The strategy of Argentina is not to negotiate with representatives of the retail bondholders,” says Stock. The main carrot appears to be the fact that retail would not be asked to put in new money to participate. Stock adds that the group will continue to pursue its case in the World Bank’s ICSID court, and others are continuing with legal strategies. “We will wait for 2011, for a new administration [that is] more market friendly, meanwhile we continue through the courts,” says Botsford.

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