July 22, 2014
Eurobonds holders ask Griesa for an exemption on funds block
Holders of Argentina Eurobonds asked US Judge Thomas Griesa for an emergency ruling today to help them recover the funds deposited in the Bank of New York Mellon by the government last Thursday that the judge ordered to be returned to the country.
The European creditors seek to receive payments for the debt service and request Griesa to exempt Eurobond payments from the blocking, saying it will not affect rulings “on over $10 billion” in US dollar bonds.
“The entire payment process for Eurobonds never enters the U.S. and involves only foreign banks,” bondholders’ lawyers wrote in support of the emergency motion.
The New York bank was supposed to transfer the money to a Belgian entity in Frankfurt and finally to investors through clearinghouses in Europe, according to court papers.