Argentine Bondholders Seek Answers From Other Investors
By Christie Smythe - Dec 24, 2012 11:14 AM ET
Holders of defaulted Argentine bonds asked a U.S. judge to compel another group of investors to respond to questions about whether they are working to help Argentina evade a court order requiring repayment of the defaulted debt.
Investors in the defaulted bonds filed a request Friday in federal court in New York asking that holders of restructured debt be ordered to show any communications with Argentina or plans concerning evading the earlier ruling.
U.S. District Judge Thomas Griesa ordered Argentina on Feb. 23 to pay $1.3 billion owed to defaulted bondholders when it pays about $3 billion to investors in restructured bonds, which were issued in 2005 and 2010. The judge further ruled in November that the country had to pay the $1.3 billion into an escrow account by Dec. 15. That order has been stayed pending appeal.
Restructured debt holders, which have sought to intervene in the appeal, “do not deny that they have documents and information responsive to the subpoenas,” said a memorandum filed Friday by lawyers for the defaulted bond investors, including NML Capital Ltd. and Aurelius Capital Master Ltd.
The cases are Aurelius Capital Partners LP v. Argentina 07- cv-2715; EM Ltd. v. Republic of Argentina, 03-cv-2507; U.S. District Court, Southern District of New York (Manhattan). The appeal is NML Capital Ltd. v. Republic of Argentina, 12-105, U.S. Court of Appeals for the Second Circuit (Manhattan).
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