July 30, 2014
US judge Griesa to hold hearing in Argentina bondholder litigation
A US judge has scheduled a hearing for Friday after hedge funds suing to collect on defaulted debt issued by Argentina complained about the country's plans to make a payment to creditors who participated in its past restructurings.
US District Judge Thomas Griesa in New York has scheduled a hearing for 11:30 (10:30 EDT) after a lawyer for NML Capital Ltd, a unit of Elliott Management Corp, urged him to "address this violation of this court's order."
Earlier, NML Capital has asked Griesa for a hearing to address the violation of his Court’s order, after Economy Minister Axel Kicillof announced the government has made a payment of 1 billion dollars in New York, serving its debt commitments with creditors that accepted the 2005 and 2010 swaps.
“Argentina is taking steps to make payments on the Exchange Bonds as scheduled on June 30, without making ratable payments to plaintiffs, as this Court’s order requires,” the note sent by NML to Griesa reads.
“This is a brazen step in violation of this Court’s orders and it warrants a swift and decisive response,” the Paul Singer owned fund argues.
NML added it has contacted the Bank of New York Mellon, where Argentina made the deposit, to “remind of its obligations under the Court’s orders and Federal Rule.”
“Argentina should be made to show cause why it should not be held in contempt,” it concludes.