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Montevideo, December 8th 2016 - 23:57 UTC

Griesa orders Argentina/holdouts to resume negotiations and an end to 'misleading information'

Saturday, August 2nd 2014 - 04:08 UTC
Full article 24 comments
 The Judge told Argentina lawyers “to take steps to stop the misleading information being released by the Republic” The Judge told Argentina lawyers “to take steps to stop the misleading information being released by the Republic”
“Let's cool down any idea of mistrust,” Griesa said. “What can be trusted is proposals, recommendations. That is what is important.” “Let's cool down any idea of mistrust,” Griesa said. “What can be trusted is proposals, recommendations. That is what is important.”
Argentina is questioning the impartiality of Special Master Daniel Pollack who has been dubbed as “incompetent” Argentina is questioning the impartiality of Special Master Daniel Pollack who has been dubbed as “incompetent”

US District Judge Thomas Griesa presiding over Argentina's bitter dispute with two hedge funds left the country stranded in default on Friday, ordering it to hold new negotiations and calling for an end to “mistrust”. In a stern tone Griesa slammed the decision by Argentina to defy his order that it pay in full holdout investors and instead opted to default on 29 billion dollars in debt.

At the court hearing in New York, Griesa told lawyers for Cleary Gottlieb, which represents Argentina, to “take steps to stop the misleading information being released by the Republic” regarding the battle between investors and Argentina.

President Cristina Fernandez, Economy minister Axel Kicillof and cabinet chief Jorge Capitanich have repeatedly stated that Argentina has met its debt obligations, which Griesa said was a “half truth.”

“The republic has issued public statements that have been highly misleading, and that has to be stopped,” he said.

Griesa has ordered Argentina to pay 1.33 billion dollars plus interest to NML Capital, a unit of Elliott Management Corp, and Aurelius Capital Management, the two leading US hedge funds who were not among those who agreed to accept new bonds after Argentina defaulted in 2002.

The government argues that by depositing 539 million for a scheduled June 30 coupon payment at the Central Bank of Argentina in the account of Bank of New York Mellon, the trustee, it has satisfied its obligation to pay its debts.

Griesa has ordered BNY Mellon not to transfer that money to bondholders that exchanged debt in 2005 and 2010.

“Half-truths are not the same as the truth,” the Judge said in court.

The hearing was called to “clarify where we go from here,” Griesa said, adding “nothing that has happened this week did not extinguish or reduce the obligations of the Republic of Argentina” or removed the necessity of working a settlement“.

”The debts weren't extinguished. There's no bankruptcy, no insolvency proceedings,“ Griesa said. ”The debts are still there.“

Griesa told both sides to continue working with mediator Daniel Pollack, a lawyer one senior Argentine government minister had dubbed ”incompetent“ a day earlier.

Argentina's lead lawyer told the judge the Buenos Aires government had no confidence in Pollack after he released a statement following the breakdown of negotiations, saying the case had become ”highly politicized.“

”The Republic of Argentina believes ... it was harmful and prejudiced to the republic and the impact on the market,“ lawyer Jonathan Blackman said in an exchange that prompted Griesa to tell the hearing that everyone should ”cool down“ about ideas of mistrust.

”Let's cool down any idea of mistrust,“ Griesa said. ”What can be trusted is proposals, recommendations. That is what is important.“

Before Friday's hearing, Argentina's government had said it expected nothing favorable to come from Griesa. It has previously called the federal judge an ”agent“ of the New York hedge funds.

Argentine officials have denied the country is in default since the payment in question is currently sitting in a Bank of New York Mellon account, frozen by Griesa's ruling.

”Preventing someone from paying is not a default,” President Cristina Fernandez defiantly repeated on national television Thursday.

 

Top Comments

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  • Jay Bee

    The Times had it spectacularly wrong yesterday; obviously falling for Argentina's propaganda that they had paid (everyone) but that Judge Griesa was blocking the bank from passing on the payment.

    Whether you say you are in default or not President Kirchner, you are in default.

    Aug 02nd, 2014 - 04:29 am 0
  • Iron Man

    And now they want the SEC to investigate whether the Judge has profited from his ruling! So much for cooling it down. I wonder at what stage the US government steps in to protect the reputation of its judiciary from attacks on its integrity by a foreign sovereign nation?

    None of this can be doing Argentina any favours in the US, either among potential investors or within government. Clowns.

    Aug 02nd, 2014 - 05:48 am 0
  • willi1

    ck-gang: ”Argentina is questioning the impartiality of Special Master Daniel Pollack who has been dubbed as “incompetent”.
    the most ever incompetent, silly and bullshitting figures in this conflict are ck and her robber-ment , telling lies after lies and filling their pockets as long as possible.
    after us the deluge. and this will come surely over them once they have thrown out.

    Aug 02nd, 2014 - 07:51 am 0
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