US district judge Thomas Griesa has rejected Citigroup’s request to vacate injunction, prohibiting the bank from processing payments on dollar-denominated Argentine exchange bonds.
The judge upholds his July 28, 2014 order, saying $2.3 billion of dollar-denominated bonds are covered by his decision.
Griesa says payment on exchange bonds would violate an ‘equal treatment’ provision of a 1994 Argentina bond issuance. He acknowledges Citigroup’s concern it might be sanctioned in Argentina by not processing payments, but says this is a result of Argentina having refused to observe his rulings.
Griesa again urged Argentina to cooperate with special master to resolve its differences with bondholders.
Source: Buenos Aires Herald