Law360, New York (April 08, 2015, 8:05 PM ET) -- The Argentine government escalated a legal offensive Wednesday against CitiBank Argentina’s recent accord with hedge fund creditors pushing for full repayment on defaulted sovereign debt, suing the bank in local court for deserting its bond custody business.
The complaint brought in Argentine administrative court seeks to invalidate a deal the CitiGroup Inc. unit reached to bow out of Argentina’s high-stakes tussle with a small group of determined investors that refused to accept negotiated haircuts following the nation’s 2001 default.
Last month, Citi agreed to stop agitating...