US District Judge Thomas Griesa in New York today said he would hear arguments on July 22 related to the banks and payment agents caught up in the Argentine sovereign debt case.
Griesa has received motions from the Bank of New York Mellon, the indentured trustee that currently holds a deposit from the government of $539 million in its account at the Central Bank of Argentina, on what it should do with the money.
In addition, the lead holdout NML Capital Ltd., a subsidiary of Elliott Capital Management, has filed a motion, as have bondholders with euro-denominated Argentine debt, payment systems Euroclear Bank, Clearstream Banking and JPMorgan Chase bank.
The holdouts are investors who spurned the terms of Argentina’s 2005 and 2010 debt restructuring following a $100 billion government default in 2002. Griesa has ordered that Argentina either pay the holdouts $1.33 billion plus accrued interest at the same time it pays restructured bondholders or no one should be paid.
Source: Buenos Aires Herald