Argentine Bondholders Seek Answers From Other Investors

Holders of defaulted Argentine bonds asked a U.S. judge to compel another group of investors to respond to questions about whether they are working to help Argentina evade a court order requiring repayment of the defaulted debt.

Investors in the defaulted bonds filed a request Friday in federal court in New York asking that holders of restructured debt be ordered to show any communications with Argentina or plans concerning evading the earlier ruling.

U.S. District Judge Thomas Griesa ordered Argentina on Feb. 23 to pay $1.3 billion owed to defaulted bondholders when it pays about $3 billion to investors in restructured bonds, which were issued in 2005 and 2010. The judge further ruled in November that the country had to pay the $1.3 billion into an escrow account by Dec. 15. That order has been stayed pending appeal.

Restructured debt holders, which have sought to intervene in the appeal, “do not deny that they have documents and information responsive to the subpoenas,” said a memorandum filed Friday by lawyers for the defaulted bond investors, including NML Capital Ltd. and Aurelius Capital Master Ltd.

The cases are Aurelius Capital Partners LP v. Argentina 07- cv-2715; EM Ltd. v. Republic of Argentina, 03-cv-2507; U.S. District Court, Southern District of New York (Manhattan). The appeal is NML Capital Ltd. v. Republic of Argentina, 12-105, U.S. Court of Appeals for the Second Circuit (Manhattan).

To contact the reporter on this story: Christie Smythe in New York at csmythe1@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net; Andrew Dunn at adunn8@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.