New York district judge Thomas Griesa has released a statement allowing holdout investors to submit evidence in their bid to block emission of Bonar 24 bonds, which they consider as foreign debt issued by Argentina.
Vulture fund NML Capital, owned by Paul Singer, had requested in May for the titles issued under Argentine law to be classified as foreign debt, which under the terms of the previous ruling made by Griesa would permit an embargo on the funds. Economy minister Axel Kicillof, however, has argued continually that the bonds are not subject to New York jurisdiction, with the government expected to appeal the latest decision.
The Bonar 24 was issued in April by the Economy Ministry and raised more than 1.4 billion dollars. Griesa, however, stopped short of naming any specific debt issuance in his short ruling revealed today.
«It is a general mention, without a presentation of evidence nor a Discovery request,» lawyer Eugenio Bruno explained.
«The litigants’ request was not limited just to Bonar 24, it mentioned Other External Debt. It applies to the Bonar 24 as it shares the arguments from other plaintiffs that it is External Debt.»
It is not the first time that the magistrate has threatened buyers of the bonds. On April 22 he ordered several international banks to reveal whether they were involved in the auction as agents, or if they purchased the titles.
The judge has also threatened to sanction those who bought the bonds, singling out Deutsche Bank and BBVA which, according to the information possessed by Griesa, are believed to have acquired a large part of the titles issued.
Source: Buenos Aires Herald