Wednesday, October 22, 2014

US court denies Argentina appeal over bond payment to BONY

This file picture shows the New York court of Appeals.

A US appeals court has dismissed an appeal by Argentina of an order directing Bank of New York Mellon Corp to hold onto $539 million the country deposited for its restructured bondholders.

The 2nd US Circuit Court of Appeals in New York in a brief order said it lacked jurisdiction over the appeal as the August ruling by US District Judge Thomas Griesa was a clarification rather than modification of his earlier rulings on the matter.

Griesa had ruled that the $539 million that Argentina deposited in June with BNY Mellon for bondholders who participated in two sovereign debt restructurings was "illegal," and in an August order, directed the bank to retain the funds.

The judge, in his August ruling, also said BNY Mellon's retention of the funds would not violate his prior orders or subject it to liability.