Litigator to preside over Argentina talks

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

American Apparel chain is not for sale

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.

— Reuters

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