Argentine Bond Case Set for U.S. Court Conference
The U.S. judge overseeing lawsuits against Argentina by holders of the country’s defaulted debt will hold a court conference tomorrow, a court clerk said.
U.S. District Judge Thomas Griesa is scheduled to hear from the parties in litigation by Elliott Management Corp.’s NML Capital Fund and other investors who are trying to collect on $1.3 billion in the defaulted bonds.
A federal appeals court in New York ruled Oct. 26 that Argentina can’t make payments on its restructured sovereign debt while refusing to pay holders of the defaulted bonds. The appeals court sent the case back to Griesa to clarify how a payment formula is intended to work and to determine how the court’s orders apply to intermediary banks and other third parties.
On Nov. 6, lawyers for NML Capital asked Griesa for an expedited decision on those questions, citing press statements by Argentine President Cristina Fernandez de Kirchner and members of her cabinet that, according to NML, show the country is trying to evade the appeals court ruling.
In a letter to Griesa dated Nov. 5, Argentina said it’s seeking a rehearing from the three-judge appeals panel that ruled against it or in front of the full New York-based appeals court. In their letters, the two sides disagreed over whether an order staying his earlier decisions against Argentina is still in effect after the appeals court decision.
The case is NML Capital Ltd. v. Republic of Argentina, 08- CV-6978, U.S. District Court, Southern District of New York (Manhattan).
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