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Argentina offers to pay debts with cash & bonds

  • Article by: MICHAEL WARREN
  • Associated Press
  • March 29, 2013 - 11:08 PM

BUENOS AIRES, Argentina - Argentina is offering a creative way out of its debt showdown in a U.S. appellate court.

Its proposed payment plan for $1.44 billion in debts left unpaid since the country's 2001 default is a mix of cash and new bonds that it says would provide the plaintiffs with a huge profit, but not a gargantuan one.

According to the math Argentina gave the appellate judges just before a midnight New York deadline, NML Capital Ltd. would eventually make an aggregate profit of a 284 percent on the bonds it bought five years ago, but not an unfair gain of 1,380 percent.

Argentina is appealing a ruling that would make it pay it all in cash up front.

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