May 21, 2013
Bondholders to argue for Argentina’s appeal
Bank of New York Mellon allotted time
A federal appeals court has agreed to hear from more parties potentially affected by its review of a decision requiring Argentina to pay U$1.33 billion to bondholders who did not participate in two debt restructurings. The 2nd US Circuit Court of Appeals, in an order on Monday, set aside additional time for oral arguments scheduled for February 27.
Still, lawyers on all sides will not have much time to make their case: the New York court has allotted 49 minutes overall for the arguments, up from the 30 minutes originally scheduled.
Argentina is seeking the reversal of a November order by US District Judge Thomas Griesa in Manhattan that required Argentina to pay US$1.33 billion into escrow for so-called “holdout” investors when it paid bondholders who participated in the debt restructurings.
Griesa’s ruling followed an October decision by the 2nd Circuit that required Argentina to pay all of its bondholders equally, instead of giving priority to holders of restructured debt.
In Monday’s order, the court allotted time to a lawyer for bondholders who participated in the debt exchanges following Argentina’s US$100-billion sovereign default in 2001, and to a lawyer for Bank of New York Mellon Corp, the trustee for bondholders who participated in the 2005 and 2010 exchanges. Both have supported Argentina in its appeal.