Citigroup faces regulatory and criminal sanctions by Argentina, which defaulted again in July, if it cannot process the $5 million payment by Sept. 30, Karen Wagner, Citigroup's lawyer, said during arguments Thursday.

Friday, September 19, 2014

US court tosses Argentina, Citigroup appeal in bond case

A US appeals court dismissed an appeal by Citigroup Inc and Argentina of a judge's order blocking the bank from processing payments on $8.4 billion in bonds issued under the country's local laws following its 2002 default.

The 2nd U.S. Circuit Court of Appeals in New York in a brief order declined to find it had jurisdiction, because the order Citigroup and Argentina appealed over was a "clarification, not a modification" of a prior decision by US District Judge Thomas Griesa.

The appellate court, though, said nothing in its decision to prevent Citigroup from seeking further relief from Griesa.

Citigroup faces regulatory and criminal sanctions by Argentina, which defaulted again in July, if it cannot process the $5 million payment by Sept. 30, Karen Wagner, Citigroup's lawyer, said during arguments Thursday.