As hopes for a settlement between Argentina and holdout creditors fade, efforts by U.S. hedge fund NML Capital Ltd. to seize assets allegedly owned by an associate of Argentine President Cristina Kirchner and her husband and predecessor Néstor Kirchner are gaining traction, the Wall Street Journal reported today. Earlier this week, U.S. District Judge Cam Ferenbach in Nevada issued a ruling to help NML uncover information about a network of 123 companies based in Nevada that Argentine prosecutors allege are affiliated with Argentine construction baron Lazaro Báez, who built a business empire after Kirchner was elected president in 2003. Some analysts say the move is likely to raise tension between holdout creditors and the Argentine government, complicating efforts to reach a deal that would lift Argentina out of its recent default. U.S. Judge Thomas Griesa blocked an attempt by Argentina to pay other creditors, who accepted previous debt-restructuring offers, unless Buenos Aires also paid the holdout creditors. Credit-ratings agencies then ruled that Argentina had defaulted on its debt.
