Belgian Holders of Argentine Debt Lose Court Order Bid

Belgian holders of Argentine debt lost a bid for an emergency order from a Brussels court seeking to secure payments they later received on schedule on June 30, a lawyer told a U.S. court.

Christopher Clark, a lawyer representing holders of Euro-denominated Argentine bonds told the U.S. Court of Appeals in New York that the Brussels Commercial Court on June 28 rejected a request by the Belgian bondholders for an emergency ruling requiring Belgian intermediaries to go forward with the June 30 payments, which they claimed were threatened by U.S. court orders that are currently being appealed. The payments went forward on schedule, without the Belgian court order, Clark said.

The Euro bondholders group is made up of Knighthead Capital Management LLC, Redwood Capital Management LLC and Perry Capital LLC. They hold bonds issued by Argentina in two debt restructurings, in 2005 and 2010, that are subject to U.K. law and paid through non-U.S. intermediaries, they said in court papers filed in the U.S.

The appellate court is considering an appeal of a lower court’s ruling that Argentina must pay holders of defaulted bonds when it makes scheduled payments on the restructured debt. A ruling in the case could come at any time.

Clark didn’t immediately return a message seeking comment on his letter. Peter Truell, a spokesman for Elliott Management Corp., whose NML Capital unit is the lead holder of defaulted Argentine bonds in the U.S. case, declined to comment on Clark’s letter.

The appeal case is NML Capital Ltd. v. Republic of Argentina, 12-00105, U.S. Court of Appeals for the Second Circuit (New York).

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