• U.S. judge Wednesday revoked injunctions barring bond payments
  • Elliott, Aurelius, two others had asked judge for more time

The four hedge funds that reached a historic $4.65 billion settlement with Argentina on Monday over the nation’s defaulted bonds filed an appeal that may complicate a final resolution of the 15-year legal battle.

Paul Singer’s Elliott Management, Aurelius Capital Management, Bracebridge Capital and Davidson Kempner each filed papers saying they are appealing a judge’s order Wednesday that drops injunctions blocking Argentina from issuing new debt. The South American nation is seeking to raise money to pay those settlements and others, totaling $6.2 billion, with the goal of returning to international credit markets for the first time since 2001.

U.S. District Judge Thomas Griesa in Manhattan ruled Wednesday that the injunctions, which Elliott and the others won to try to force Argentina to the negotiating table, are no longer necessary and will expire once the nation repeals laws barring settlement and pays all the investors who agreed to resolve their claims by Feb. 29. The ruling was delayed for two weeks to allow any appeals.

The hedge funds didn’t say in their court filings why they are appealing Griesa’s order. Lawyers for the Elliott-led funds on Tuesday asked Griesa to delay his ruling for a month to permit investors with smaller holdings to negotiate with Argentina. The nation has so far reached agreements with holders of about 85 percent of the bonds covered by the injunctions.

The case is NML Capital v. Republic of Argentina, 08-cv-06978, U.S. District Court, Southern District of New York (Manhattan).

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