US judge Thomas Griesa has ordered Deutsche Bank and JPMorgan Chase and Co to hand over documents relevant to Argentina's allegedly planned new issuance of dollar-denominated debt.

Thursday, February 26, 2015

US judge orders two banks to hand over documents on alleged planned dollar debt issuance

US Judge Thomas Griesa.

US judge Thomas Griesa has ordered Deutsche Bank and JPMorgan Chase and Co to hand over documents relevant to Argentina's allegedly planned new issuance of dollar-denominated debt.

According to court documents dated February 25, NML Capital, one of a small group of US hedge funds suing Argentinaover unpaid debt stemming from its 2002 default, served subpoenas on the banks seeking information on the issuance of Bonar 24 bonds on February 9.

Deutsche Bank and JPMorgan were ordered by US District Judge Thomas Griesa to "immediately produce to NML's counsel any and all readily available documents responsive to the subpoenas ... documents sufficient to describe the flow of funds with respect to the Bonar 24s," the document showed.

Yesterday media versions indicated informal talks with non-US investors were already taking place in a move that would raise fresh dollars in Argentina and two market sources with knowledge of the offering said that Argentine representatives have begun marketing new Bonar 2024 notes via Deutsche Bank and JP Morgan. 

However, sources from the Economy Ministry told Ambito Financiero newspaper last night that "no bank entity has been ordered to offer Argentine debt; we have received several proposals and we are satisfied with current yieldings." "We don't need the funds, so we are analysing those proposals in detail."

The media versions prompted an angry reaction from holdout investor NML Capital, which said it was "dismayed that JPMorgan and Deutsche Bank are participating in the schemes of an international scofflaw, schemes which we believe are an attempt to evade the court-ordered enforcement of bondholders' rights."