Wednesday, November 26, 2014

US judge Griesa denies payment to European creditors

US Federal judge Thomas Griesa.

US Federal judge Thomas Griesa has rejected a request by European investors seeking payment on Argentine titles currently blocked in New York, despite an ongoing parallel court battle over the issue in London.

The magistrate overseeing the judicial dispute between Argentina and the so called vulture funds argued “I cannot make more exceptions,” and ordered that the payment of interest for those bonds remain frozen in the Bank of New York Mellon.

This ruling contradicts an earlier resolution by the same judge, who had authorized ‘one-time’ measures allowing the payments to European bondholders following a Citibank request.

“Basically, the investors with bonds under euro currency ask for an order clarifying that the injunction measure will not be applied for third parties. However this court denies granting the requested petition,” Griesa ruled.

He considered that by doing so, “that would mean to start making important exceptions to the [earlier] sentence proclaimed by the Court, which was confirmed by the Second Circuit Appeal Court.”

European bondholders wanted Griesa to delay his decision until a resolution by British courts.

An important group of investors led by George Soros’ Quantm Partners, Master Fund Knighthead and Hayman Capital filed a petition before the UK Justice, demanding the payment of those bonds; an estimated figure at 226 million euros, or 280 million dollars.