November 1, 2014
Griesa insists Argentina makes 'false statements', threatens to declare the country in 'contempt'
New York district judge Thomas Griesa threatened today the Argentine lawyers to declare the South American nation in “contempt” if the Republic continues to make “false and deceiving statements,” following Argentina’s claim it has already paid exchange bondholders and has no pending obligations, as it deposited US$539 million in bond payments in Bank of New York Mellon (BoNY) and Citibank.
Representatives of both the country and holdout investors were called to the hearing, which started at 4pm in New York.
"Argentina has not paid. There has been no payment. Argentina has to cease making false and deceiving statements," Griesa said in the hearing, and urged to continue negotiations between the parties under appointed mediator Daniel Pollack to reach an agreement.
Yesterday, Griesa ordered BoNY to hold the Argentine funds and said the country's attempt to pay restructured bond holders was illegal, as he sentenced Argentina can only pay them if it also pays hedge funds that rejected the terms of debt restructurings in 2005 and 2010, while Argentina pressured BoNY and Citibank to deliver the funds.