Thursday, March 12, 2015

Griesa blocks Citigroup from processing Argentine bond payments

US district judge Thomas Griesa (file photo).

US district judge Thomas Griesa has rejected Citigroup’s request to vacate injunction, prohibiting the bank from processing payments on dollar-denominated Argentine exchange bonds.

The judge upholds his July 28, 2014 order, saying $2.3 billion of dollar-denominated bonds are covered by his decision.

Griesa says payment on exchange bonds would violate an 'equal treatment' provision of a 1994 Argentina bond issuance. He acknowledges Citigroup’s concern it might be sanctioned in Argentina by not processing payments, but says this is a result of Argentina having refused to observe his rulings.

Griesa again urged Argentina to cooperate with special master to resolve its differences with bondholders.