Monday, November 10, 2014
Judge Griesa authorises Citibank to make bond payments
New York District judge Thomas Griesa has authorised Citibank to complete the transfer of 85 million dollars to holders of restructured Argentine bonds under local law, meeting debt services that expire on December 31.
The financial entity had previously requested an audience with the justice to evaluate the situation scheduled for December 2, but in his latest ruling Griesa put on hold that meeting and gave the green light for payment.
Citibank's request will have to be repeated in the future, however, as Griesa has consistently only allowed the honouring of commitments to bondholders under Argentine legislation on a 'one-time basis', since the country's dispute with vulture funds saw an interruption in payments at the end of July 2014.
The next step for the nation in the ongoing legal conflict with hedge funds such as NML Capital, who demand full repayment on titles defaulted on in 2001, will be to await the magistrate's decision concerning other holdout investors who refused to enter 2005 and 2010 restructuring efforts.
Argentina's attorneys have asked for the "pari passu" judgement not to be applied to any further litigants, with a ruling expected later this week. The nation has already revealed that it would not begin negotiations without a commitment from other creditors to not request equal rights with the rest of the vulture funds in the case of a favourable judgement.
The financial entity had previously requested an audience with the justice to evaluate the situation scheduled for December 2, but in his latest ruling Griesa put on hold that meeting and gave the green light for payment.
Citibank's request will have to be repeated in the future, however, as Griesa has consistently only allowed the honouring of commitments to bondholders under Argentine legislation on a 'one-time basis', since the country's dispute with vulture funds saw an interruption in payments at the end of July 2014.
The next step for the nation in the ongoing legal conflict with hedge funds such as NML Capital, who demand full repayment on titles defaulted on in 2001, will be to await the magistrate's decision concerning other holdout investors who refused to enter 2005 and 2010 restructuring efforts.
Argentina's attorneys have asked for the "pari passu" judgement not to be applied to any further litigants, with a ruling expected later this week. The nation has already revealed that it would not begin negotiations without a commitment from other creditors to not request equal rights with the rest of the vulture funds in the case of a favourable judgement.
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