According to mercopress….the latest battle centers on a
ruling that found Argentina violated a bond provision requiring it treat all
creditors equally when it paid the exchange bondholders without paying the
holdouts. Two US courts have said they should all be paid simultaneously.
On November 21, U.S. District Judge Thomas Griesa ordered
Argentina to deposit the 1.33 billion for holdouts including NML Capital Ltd
and the Aurelius Capital Management funds by December 15, the same day about 3
billion comes due on growth-linked GDP warrants, issued during Argentina's debt
swaps. This raised fears of another
default because if Argentina had refused to pay the holdouts, as expected, US
courts could have disrupted payments to the holders of restructured bonds.
Argentina appealed the orders and won an emergency stay, or
halt, from the 2nd Circuit Court.
NML and Aurelius argue, however, that Argentina should have
to post a security deposit of 1.45 billion, or at least 250 million, by
December 10 to ensure the country complies with the court orders if it loses
the appeal….
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