Thursday, July 24, 2014

Aurelius says it will not ask Griesa for a stay

Argentine debt holdout investor Mark Brodsky, chairman of Aurelius Capital Management, said his group will not ask US Judge Thomas Griesa to suspend his payment order, after a story in Argentina's La Nación newspaper today suggested that Paul Singer’s NML Capital Ltd could ask Griesa to reinstate the stay of injunction as requested by Argentina.

The head of one of the lead holdout investors, in the case which awarded them $1.33 billion plus accrued interest, said in a statement that the newspaper story was “utter fiction”

La Nación reported that the other lead holdout in the case, NML Capital Ltd, a division of Elliott Management Corp, could call for Griesa in New York to temporarily suspend, or stay, his order that Argentina pay holdout creditors.

Argentina was ordered to pay the holdouts at the same time it paid bondholders who accepted an exchange, or restructuring, of defaulted debt in 2005 and 2010. Argentine government says says the order is pushing it towards default.