New York district judge Thomas Griesa has declined a request from the Citigroup bank to allow the entity to process the payment of Argentine bonds under local law while an appeal against the magistrate’s negative ruling is being prepared.
Last Thursday Griesa turned down the bank’s petition to handle the country’s debt services, in line with a previous ruling imposed on July 28 that will be appealed as another facet of the fierce judicial conflict Argentina disputes with holdout investors.
The judge insists that Argentina cannot pay restructured bondholders if creditors who did not participate in the bond swaps, such as hedge fund owner Paul Singer’s NML Capital, do not also settle their claims against the nation.
Griesa had previously allowed Citigroup to process operations on three separate occasions before making a final decision on the issue. The next set of payments must be made by March 31.
Citigroup, meanwhile, warned Griesa that if the US courts block processing of the payment, Argentina could remove its license to operate in the country.
Source: Buenos Aires Herald