Holders of Argentina’s restructured bonds asked for an emergency stay to block orders by U.S. District Judge Thomas Griesa that prevent the country from paying interest on the debt next month without paying $1.3 billion to owners of defaulted notes.
Holders of the restructured debt asked the federal appeals court in New York to enter an emergency stay while they appeal Griesa’s rulings, claiming that concern about whether Argentina will default is causing the value of their bonds to drop, according to court papers provided by ASC Advisors, which handles public relations for their lawyers. The papers couldn’t be immediately confirmed with the court.
Argentina is scheduled to make more than $3 billion in payments on the restructured bonds in December, lawyers told Griesa in a hearing this month. He ruled Nov. 21 that Argentina must pay the money it owes the so-called holdouts, led by a unit of billionaire hedge fund manager Paul Singer’s Elliott Management Corp., into an escrow fund while it appeals. The country has until Dec. 15 to comply.
“The stay will allow a full and fair hearing of all the arguments,” David Boies, an attorney representing the group, said yesterday in an e-mailed statement. “The motion would ensure that interest payments to the bondholders continue while the appeal is decided.”
Griesa ruled Nov. 21 that Argentina must pay the holders of its defaulted debt if it goes forward with next month’s scheduled payments. He declined Argentina’s request for a stay. Argentine stocks fell to a five-month low on news of the ruling. Argentina’s restructured dollar bonds have plunged 13 percent on average since his decision, according to data compiled by JPMorgan Chase & Co. (JPM:US)
The case is NML Capital Ltd. v. Republic of Argentina, 12-105, U.S. Court of Appeals for the Second Circuit (New York).
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