A special master was appointed Monday to preside over negotiations between Argentina representatives and U.S. bondholders aimed at ending a long battle over $1.5 billion in debts.
U.S. District Judge Thomas Griesa in Manhattan appointed Daniel A. Pollack to conduct and preside over the talks. Pollack is a Harvard Law School-trained litigator with decades of experience in financial cases.
The appointment came after a lawyer for Argentina, Carmine Boccuzzi Jr., said in a letter to the judge that Argentina “wants to emerge from the litigation that has burdened both it and the courts.”
Boccuzzi said Argentina is willing to negotiate in good faith, but he asked the judge to suspend financial penalties during negotiations. The judge did not immediately rule on the request.
The plaintiffs in the New York litigation represent about 1 percent of Argentina’s $100 billion of debt that went into default in 2001. About 92 percent of creditors joined 2005 and 2010 debt swaps, agreeing to accept less money. Another 7 percent of those who did not join the swaps did not sue Argentina and are not part of the U.S. court case.
Argentina was forced to the negotiating table after the U.S. Supreme Court rejected its appeals of Griesa’s rulings that ordered the country to make payments on the debt.
— Associated Press
The co-chairman of American Apparel said Monday that the company was not for sale and had no need for immediate capital, and that the search for a new chief executive to replace ousted Dov Charney had generated “enormous interest.”
The board of the hipster retail chain terminated Charney, the company’s founder, as chairman and CEO last week, citing alleged misuse of corporate funds and his role in disseminating nude photos of an ex-employee who had sued him.
“We are certainly not looking to sell the company,” Allan Mayer, the new co-chairman of the company, told Reuters.
“If someone came and said they want to buy American Apparel for $10 per share, we’d be crazy to not listen . . . but by no means [are we] looking to sell now,” he said.
American Apparel’s shares closed at 67 cents, down 2.5 percent.
● The White House and an influential pair of business organizations called for renewal of the Export-Import Bank, one day after newly elected House Majority Leader Kevin McCarthy (R-Calif.) said the agency should be phased out. White House spokesman Josh Earnest said the bank “helps American companies create and support jobs here at home at no cost to taxpayers” and traditionally has enjoyed bipartisan support as a result. The bank also returned $1 billion to the Treasury in the last budget year. The government agency’s charter expires in September, and without legislation, it would not be able to back new loans. The U.S. Chamber of Commerce and National Association of Manufacturers sent an appeal to lawmakers calling for the bank’s renewal, signed by 865 organizations from around the country.
● The backlog of grain shipments across the Plains has been reduced this spring, but U.S. regulators are requiring BNSF and Canadian Pacific railroads to provide weekly updates on their efforts to catch up before harvest. The U.S. Surface Transportation Board has told BNSF and Canadian Pacific to submit plans to address the backlog and begin filing weekly updates.
● San Francisco’s city attorney issued a cease-and-desist demand to a mobile app called Monkey Parking, which allows people to auction public parking spaces that they’re using to other nearby drivers. In a letter to Paolo Dobrowolny, the CEO of the Rome-based tech start-up, city attorney Dennis Herrera cited a provision in San Francisco’s police code that prohibits people and companies from buying, selling or leasing public on-street parking and mandates fees of up to $300 for drivers who violate the law.
● Avon Products, the world’s largest direct seller of cosmetics, said it will cut another 600 jobs as it tries to reduce its spending. The company said most of the eliminated jobs will be in its corporate organization and its North American business. Avon had 36,700 employees at the end of 2013.
— From news services
● 9 a.m.: Standard & Poor’s/Case-Shiller index of home prices for April.
● 10 a.m.: New home sales for May.
● Earnings: Walgreen.●
— From news services