Argentina Debt Injunction to Be Lifted in Blow to Hedge Funds
- Holdout hedge funds lose powerful tool to force payment
- Country says it must borrow to settle defaulted-bond claims
This article is for subscribers only.
Argentina persuaded a U.S. judge to drop court orders barring the country from issuing new bonds or servicing its restructured debt, taking a key step back into the global financial mainstream after a 15-year standoff with creditors.
U.S. District Judge Thomas Griesa Friday agreed to drop the injunctions once Argentina repeals laws barring payment of its defaulted debt and makes full payment to bondholders who settle by Feb. 29. The decision is conditioned on a federal appeals court’s allowing Griesa’s ruling to go forward.