Thursday, October 1, 2015

Griesa issues new deadline

United States District Judge Thomas Griesa is seen in his court in a file photo.

‘Me-toos’ have time until December to present claims

NEW YORK — In a new hearing in New York, United States District Judge Thomas Griesa yesterday granted the so-called “me-too” bondholders four months to establish the amount that holdouts are demanding from Argentina.

Griesa had been asked twice by the Second US Circuit Court of Appeals to return to a narrower definition of the “me-too” bondholders, as those who hold defaulted debt and did not agree to any restructuring but also did not file suit against Argentina. Griesa had previously acknowledged claims worth US$5.4 billion from this group pushing the bill for holdout funds to US$7 billion following Griesa’s previous order to pay NML and Aurelius Management.

The US judge welcomed at his court lawyers representing Argentina and the holdout creditors, who were asked to give a exact figure, including interests, of the money claimed.

Saul Roffe, lawyer of the creditors, asked for between six and eight months to come up with the figure as he will have to contact Caja de Valores, Argentina’s central securities depository, and other clearing houses such as Euroclear as well to collect information.

Nevertheless, Griesa said that deadline was “unreasonable” and set December 1 as the date for a new hearing, when the plaintiffs will have to provide the exact amount claimed.

Aside from the hedge funds, the other holdout creditors are a mix of individual and institutional investors from around the world.

Griesa didn’t open the discussion at the hearing to the Bonar 2024 bonds issued by Argentina in April for US$1.4 billion. NML and Aurelius Managment had claimed the bonds should be considered external indebtedness as the country was allegedly helped by foreign banks to allocate the bonds. If that is found to be the case, Griesa could expand the reach of his interpretation of the pari passu to all of the country’s bonds.

Herald with online medi