Investors who hold Argentina’s
restructured bonds asked a federal appeals court in New York to
join their challenge with an appeal filed by Argentina in a case
involving the country’s defaulted bonds.
Calling themselves the Exchange Bondholder Group, the
investors, who agreed to exchange defaulted debt for new bonds,
asked the U.S. Court of Appeals in Manhattan today to
consolidate the appeals and to consider their arguments
alongside Argentina’s at a Feb. 27 hearing.
Argentina and the exchange bondholders are fighting rulings
by U.S. District Judge Thomas Griesa in New York that would have
required the country to pay $1.3 billion owed the defaulted
bondholders into an escrow account when it makes payments on the
restructured debt.
The exchange bondholders, who aren’t parties to the
litigation between Argentina and the defaulted debt-holders,
claim that a ruling against the nation would threaten their
ability to collect.
Argentina won a delay of Griesa’s orders while it appeals.
The delay permits it to make scheduled payments on the exchange
bonds this month without making the escrow payments.
The case is NML Capital Ltd. v. Republic of Argentina,
12-105, U.S. Court of Appeals for the Second Circuit
(Manhattan).
To contact the reporter on this story:
Bob Van Voris in New York at
rvanvoris@bloomberg.net
To contact the editor responsible for this story:
Michael Hytha at mhytha@bloomberg.net
