Argentina Must Pay $1.33 Billion to Owners of Bonds

Argentina’s bonds fell the most in a week and the cost to insure its debt against default surged after a U.S. court ruling ordered the South American country to pay $1.33 billion to holders of defaulted securities.

Argentina must pay so-called holdouts, led by a unit of billionaire hedge fund manager Paul Singer’s Elliott Management Corp., next month if it proceeds with scheduled payments of more than $3 billion to owners of its restructured bonds, according to a copy of the ruling by a U.S. judge obtained by Bloomberg News. District Judge Thomas Griesa in Manhattan ordered Argentina to pay the money into an escrow account while an appeals court considers his rulings in the case. The ruling couldn’t immediately be confirmed in online court records.