September 23, 2014
Griesa authorizes payment to European bondholders
New York judge Thomas Griesa today authorized Euroclear and Clearstream banks to make a one-off transaction for mainly European exchange bondholders with the money deposited by Argentina on June 26.
Several financial entities had previously requested Griesa clarify what to do with deposits intended to exchange bondholders, and the judge recommended freezing the assets.
Griesa then allowed exceptions to the “pari passu” clause he sanctioned and let Citibank make a one-off transaction.
The judge specified today other financial entities such as Bank of New York Mellon remain blocked, and recalled his sentence does not prohibit “bond payment in pesos issued by the Argentine Republic in the 2005 and 2010 debt swaps under national law.”