Saturday 25 October 2014

Argentina asks US for delay in bondholder payouts

Nate Raymond

Published 23/07/2014 | 02:30

U.S. District Judge Thomas Griesa, overseeing Argentina's debt restructuring case, ordered negotiators for the country and holdout investors to meet with a court-appointed mediator until a settlement is reached
U.S. District Judge Thomas Griesa, overseeing Argentina's debt restructuring case, ordered negotiators for the country and holdout investors to meet with a court-appointed mediator until a settlement is reached

Argentina has asked a US judge to put on hold an order requiring it to pay bondholders who did not participate in debt restructuring following the country's 2002 default, while it seeks a "global resolution".

Ahead of a deadline next week to reach a deal or face a new default, Argentina filed papers asking a New York federal judge to stay a ruling that it pay the holdout investors $1.33bn (€986m) plus interest.

Argentina, which has been in settlement talks, said any deal must take into account other bondholders and factor in a clause in its restructured bonds that could open it up to further liability.

"As those risks remain, so does the necessity and appropriateness of a stay," Argentina's lawyers wrote.

The request is not the first time Argentina has asked for a stay, which US District Judge Thomas Griesa has previously denied.

Argentina separately filed a notice of appeal of a June 20 ruling by Judge Griesa that prevented it from going through with a proposal by the country's economy minister to swap bonds governed by New York law for those under local jurisdiction. Judge Griesa was yesterday expected to hear a range of requests by Argentina, bondholders and financial institutions over how to enforce his ruling requiring payment to the holdouts. The payment to the holdouts, led by Elliott Management's NML Capital and Aurelius Capital Management, was due at the time of Argentina's next payment to the 92pc of its creditors who participated in debt swaps in 2005 and 2010 following the country's $100bn default. (Reuters)

Irish Independent

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