U.S. District Judge Thomas Griesa has ordered trustees to withhold payments on restructured debt if Argentina doesn’t also pay defaulted debt.

Paul Singer

Owners of securities left over from the default are demanding $1.4 billion. Argentina said it will only pay the so-called holdouts, led by billionaire investorPaul Singer, the same as it offered in a 2010 restructuring, which was worth about 30 cents on the dollar. U.S. District Judge Thomas Griesa has ordered trustees to withhold payments on restructured debt if Argentina doesn’t also pay defaulted debt.

“There are significant risks,” wrote Citigroup analysts Guillermo Mondino and Fernando Diaz in a July 22 report. “If the court ruling implements a final formula higher than what Argentina is willing to pay, the trustee is bound by the injunction, and a new stay of execution is not warranted, bonds and warrant payments could be at risk.”

http://rolfjkoch.blogspot.ch/2013/08/the-warrants-yesterday-jumped-13.html