As soon as Mauricio Macri was elected the President of Argentina, he moved quickly to settle debt with bondholders in the United States by implementing debt resolution agreements. He was aware the mission would be challenging trying to influence the members of the Lower House of Congress. He needed at least 146 votes to lift the Sovereign Payment and Lock Laws. On March 16th, 2016, President Mauricio successfully accomplished his mission, winning 165 votes out of 250 votes. The Argentine Government also agreed to settle over $155 million in defaulted debt, reported by Reuter on March 19, 2016.
More than 155 creditors eagerly waited for settlement agreements by the Argentina Government. The defaulted debt was actually Sovereign bonds which Highland Capital Management President, James Dondero wants to avoid when he invests in Argentina this year. According to Bloomberg, Dondero is planning to invest in other investment alternatives after the Argentina Government defaulted on billions of dollars in past due interest and principle. He seems to be carefully about investing into the country that was politically and economically challenged since 2001.
Some of the agreements Argentina Government made with U.S. Bondholders of Sovereign bonds happened in February. The government agreed to pay $6.5 billion to settle a $9 billion debt; and $4.65 billion in principle, payable by April 14th, 2016. The agreements were reached on February 5th an 29th. Now that the contracts are finalized and Argentina Laws were removed from legislative law, James Dondero and U.S. bondholders are planning to hold their original sovereign bonds. They are also considering to invest in Argentina when the country returns to global markets in April.
James Dondero said to Bloomberg that Highland Capital Management started to pare its capitals from September 2015 through February 2016. This April, Argentina will issue over $11 billion of debt according to New York Law. Dondero appointed Terry Jones as the President of Institution Product in October 2015, one month before the firm began paring its interests in Argentina. Both, Dondero and Jones will work together to avoid troubled economies and expedite solutions to protect their clients.
Highland Capital Management Firm is headquartered in Dallas, Texas and has branch offices in England, New York, and Seoul. The firm’s clientele portfolio includes investments of wealthy individuals, pension plans, endowments, and fund of funds. One of the objectives of James Dondero is to increase its clientele portfolio internationally.