Monday, July 28, 2014
Judge Griesa authorises payment of bonds under Argentine law
New York judge Thomas Griesa has confirmed that the Citigroup bank will on a one-off occasion be permitted to process payment on Argentine bonds held under local law, which form part of the titles restructured following the default of 2001.
Griesa denied the request of holdout investors, such as NML Capital and Aurelius, to block payment of interest on the bonds, while keeping in place restrictions on those held under New York jurisdiction. The magistrate argued that the bank cannot distinguish titles from bonds emitted this year in an agreement with Spanish petroleum giant Repsol.
"This court does not wish to affect the agreement with Repsol," Griesa commented on passing his judgement.
The ruling leaves Citigroup free to pay bondholders with titles denominated in dollars but under Argentine law, contrary to the wishes of the so-called 'Vulture Funds' who had tried to stop the bank from distributing 85 million dollars received from Argentina to creditors.
Griesa denied the request of holdout investors, such as NML Capital and Aurelius, to block payment of interest on the bonds, while keeping in place restrictions on those held under New York jurisdiction. The magistrate argued that the bank cannot distinguish titles from bonds emitted this year in an agreement with Spanish petroleum giant Repsol.
"This court does not wish to affect the agreement with Repsol," Griesa commented on passing his judgement.
The ruling leaves Citigroup free to pay bondholders with titles denominated in dollars but under Argentine law, contrary to the wishes of the so-called 'Vulture Funds' who had tried to stop the bank from distributing 85 million dollars received from Argentina to creditors.
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