December 7, 2013
Vulture funds urged NY judge Griesa to call off hearing - Gov't
Vulture funds fighting Argentina over the country’s defaulted bonds a decade ago requested New York judge Thomas Griesa to call off the hearing scheduled for today, the state news agency Télam reported.
The meeting between bondholders and Argentine lawyers had been scheduled for today's noon but federal judge Thomas Griesa is now determining whether the new debt swap announced by President Cristina Fernández de Kirchner this week violates his ruling in favor of NML Capital and Aurelius Capital Management that demand a 1.3 billion dollar payment threatening to plunge the South American country into default.
According to Economy Ministry sources quoted by Télam, the suspension of the hearing was “requested by the complainant and not by Argentina.”
In a national television address, President Cristina Fernández de Kirchner announced the debt restructuring offering to swap holders of New York-law bonds into debt governed by Argentina’s legislation in a move that aims to prevent possible embargos.
Last year, Argentina's navy frigate ARA Libertad remained seized in the Ghanaian port of Tema for 10 weeks after following the dispute with US-based vulture funds. The UN International Tribunal for the Law of the Sea finally ordered Ghana's judicial authorities to release the ship with Argentina arguing warships immunity.
The project has received a first round of approval yesterday at a Senate joint committee clearing the bill for next week’s parliamentary session.