Argentina eventually entered into a state of default for the second time in 12 years as the holdouts and the Argentine government failed to reach an agreement. Credit rating agency S&P cut the county’s rating from CCC- to Selective Default.
Economy Minister Axel Kicilloff offered holdouts to restructure their debt within the same conditions agreed in the 2005 and 2010 swaps, but they refused and the $539 million interest payments haven’t due to holders of Argentine restructured debt won’t be made. Even if it deposited the full amount in the Buenos Aires account of trustee agent Bank of New York Mellon, the bank couldn’t pass it on as Argentina had to agree to settle with them.
(Source: the WSJ)