Tuesday, June 2, 2015
US court clears way for Argentina appeal in Citibank dispute
The US 2nd District Court of Appeals has determined that Argentina can appeal the ruling handed down by judge Thomas Griesa, which blocked local agent Citibank from processing payments to creditors of debt held in the country's jurisdiction.
Today's decision from the court, based in New York, dismissed a counter-petition from holdout investors to reject the Argentine appeal request.
The original appeal had been made in May by the government, relating to Griesa's decision to ban Citi from processing payments of restructured bonds. The bank had previously been cleared to operate with a series of injunctions, but a subsequent agreement with major litigants NML Capital to allow for an eventual exit from the Argentine custody business provoked a negative reaction from the nation.
A ruling from the local courts ordered the pact to be suspended, while Citibank was hit with the suspension of the president of its Argentine subsidiary and was also submitted to an inspection from the Central Bank, which found no irregularities.
Today's decision from the court, based in New York, dismissed a counter-petition from holdout investors to reject the Argentine appeal request.
The original appeal had been made in May by the government, relating to Griesa's decision to ban Citi from processing payments of restructured bonds. The bank had previously been cleared to operate with a series of injunctions, but a subsequent agreement with major litigants NML Capital to allow for an eventual exit from the Argentine custody business provoked a negative reaction from the nation.
A ruling from the local courts ordered the pact to be suspended, while Citibank was hit with the suspension of the president of its Argentine subsidiary and was also submitted to an inspection from the Central Bank, which found no irregularities.
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