In a notice filed in Manhattan federal court, lawyers for the bondholders challenged an Aug. 6 ruling from US District Judge Griesa that Argentina cannot pay the bondholders until it also pays holdout investors who refused to restructure their debt in the wake of Argentina's 2001-2002 default.
Meanwhile, Citigroup Inc and Argentina today were granted an expedited appeal of another order from Griesa that barred future payments to holders of certain US dollar-denominated restructured bonds, after the judge allowed the bank to make a one-time payment.
Both appeals will be considered by the 2nd US Circuit Court of Appeals in New York. The court today set oral arguments in the Citibank matter for Sept. 18.
Argentina defaulted after missing a July 30 deadline for payments on restructured bonds. Officials have claimed the country fulfilled its obligations but was blocked by Griesa, whom they have criticized, saying he overstepped his authority.
- In June, Argentina deposited $539 million in Bank of New York Mellon Corp's account at the Central Bank of Argentina, earmarked for bondholders who participated in sovereign debt exchanges in 2005 and 2010. It also deposited funds with Citibank Argentina.
- But Griesa blocked the payments, saying Argentina's actions were an "illegal" violation of his prior orders.
- The euro bondholders have argued that their bonds should be exempt because they are governed by the laws of England and Wales and paid through foreign banking institutions.
- Separately, in July, Griesa permitted Citibank to pay some bondholders because the bank indicated it was unable to differentiate between dollar-denominated exchange bonds and bonds issued as part of a settlement between Argentina and Repsol SA, which are not part of the bond dispute.
http://www.buenosairesherald.com/article/167206/holders-of-argentina-eurobonds-appeal-us-judge-griesa-ruling
15/8/14
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Stiglitz aseguró que los tribunales de EEUU “fueron una farsa”....
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Griesa enables Citi to process one-off payment on US dollar-denominated bonds...
ReplyDeleteUS District Judge Thomas Griesa has enabled Citibank to process a one-off payment on US dollar-denominated bonds issued under Argentine law, during a hearing held at Manhattan federal court.
Griesa today asked both the bank and holdout representatives to prepare a presentation in order to decide whether bonds issued under Argentine law must comply with his sentence or not.
In the meantime, Citibank was given a stay to make a one-off payment until Griesa decides on the issue. This leaves three months before the next payment by Argentina on December 31 for $262 million is due to litigate over the order.
Citibank had asked Griesa to reconsider or at least stay his July ruling barring the bank from processing the payments, including one for US$5 million due September 30.
The bank said it faces regulatory and criminal sanctions by Argentina if it cannot process the payment following the country's 2002 default.
Meanwhile, bondholders who did not participate in Argentina's past restructurings, including Elliott Management's NML Capital Ltd and Aurelius Capital Management, opposed reversing Griesa's July order.
The Judge had previously sentenced Argentina to pay holdouts full-amount on their bonds, and blocked payments to exchange bondholders until the country pays the so-called "vulture funds".
http://www.buenosairesherald.com/article/170734/griesa-enables-citi-to-process-oneoff-payment-on-us-dollardenominated-bonds
26/9/14