Luxembourg's Clearstream Clearing House asks Griesa to allow eurobonds payment
Holders of Argentine bonds held through Luxembourg’s Clearstream Clearing House joined Belgian bondholders in their demand to US Judge Thomas Griesa for an emergency ruling to help them recover the funds deposited in the Bank of New York Mellon by Argentina, blocked by the Judge.
Since June 30, European bondholders under US, European or Argentine jurisdiction have been prevented from receiving payment since European clearing houses refuse to release the funds, arguing it would breach Griesa’s ruling in Argentina’s legal battle against the holdout hedge funds.
Clearstream filed a motion for clarification in the New York District Court yesterday, seeking an order that US ruling “allows Clearstream to transfer any funds it receives from Citibank Argentina on the bonds ‘governed by Argentine law and pay able in Argentina’ to Clearstream’s customers.
Some European bondholders have filed suits against clearing houses and the Bank of New York Mellon for holding the funds deposited by Argentinean government on June 26.
“European bondholders have filed suits in Belgium against Euroclear and the Bank of New York Mellon Brussels for a court order to confirm that US rulings are inapplicable in [European] soil,” said the bondholder’s attorney Cristopher J. Clark in a document sent to Griesa last week.