Friday, September 26, 2014
Griesa enables Citi to process one-off payment on US dollar-denominated bonds
NY district judge Thomas Griesa (file photo).
US District Judge Thomas Griesa has enabled Citibank to process a one-time payment on US dollar-denominated bonds issued under Argentine law, during a hearing held at Manhattan federal court.
Creditors suing Argentina over defaulted debt did not object to Citigroup Inc's request to put on hold a US court order preventing it from processing the payment.
Citigroup asked Griesa to reconsider or at least stay his July ruling barring the bank from processing the payments, including one for US$5 million due September 30.
Citigroup has said it faces regulatory and criminal sanctions by Argentina if it cannot process the interest payment on US dollar-denominated bonds issued under Argentine law following the country's 2002 default.
Bondholders who did not participate in Argentina's past restructurings, including Elliott Management's NML Capital Ltd and Aurelius Capital Management, opposed reversing Griesa's July order.Citigroup can now make a one-off payment and meet the deadline, and leave it three months before the next payment by Argentina on December 31 for $262 million is due to litigate over the order.