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Montevideo, November 19th 2018 - 12:15 UTC

Griesa leaves Argentina 'in contempt' ledge; warns any change of jurisdiction was 'lawless'

Friday, August 22nd 2014 - 07:17 UTC
Full article 34 comments
The New York judge added that any entity that aids Argentina in its efforts to move jurisdiction would also be in violation of his sentence. The New York judge added that any entity that aids Argentina in its efforts to move jurisdiction would also be in violation of his sentence.

US District Judge Thomas Griesa declared on Thursday that an Argentine plan to change the 'jurisdiction' of restructured foreign debt was illegal, while resisting holdout investors' demands that Argentina be held in contempt of court for attempting to change the site of payment to Buenos Aires.

 Griesa stopped short of issuing a contempt order against Argentina, which holdout funds had requested at the start of Thursday's audience along with financial penalties. But he made it clear that any change of payment location would be in clear violation of his ruling, which states that holdouts must be paid before restructured bondholders.

The judge further added that any entity that aids Argentina in its efforts to move jurisdiction would also be in violation of his sentence.

Hedge fund NML Capital's lawyer Robert Cohen had stated that moving the debt jurisdiction to Buenos Aires would have the effect of “gutting” Griesa's order, resuming attacks on Argentina by the so-called 'vulture funds'.

The justice in turn, expressed that he was “horrified” that Argentina had not consulted with their New York legal team before announcing their intention to move payments.

The outburst came when Cleary & Gottlieb, Argentina's representatives in the dispute, told Griesa they had not been involved in the decision taken earlier this week. The judge considered that Argentina had taken a “lawless position”, while insisting that an agreement would be the best outcome.

Argentine economy minister Axel Kixcillof on Wednesday argued that the government was not changing the payment jurisdiction, but seeking a “change of payment location” for bondholders to “collect” their money. “A government can't be banned from servicing its debt,” he insisted ratifying Argentina’s “unbreakable will” to pay and the fact that the country had not fallen in default.

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  • Lou Spoo

    I love his analogy:

    Mr Griesa likened Argentina's stance to a man showing up to complete a house purchase with only $80,000 to buy a $100,000 property and insisting: “$80,000 is a lot of money and my family is ready to move in”.

    http://www.bbc.co.uk/news/business-28891208

    Aug 22nd, 2014 - 08:20 am 0
  • british bomber

    This yank judge is so dumb. He didn't even know that the bonds are in Euros. He didn't know that they are under English law. Like all yanks.

    Aug 22nd, 2014 - 08:42 am 0
  • Britworker

    @2
    You're not really British are you amigo?

    Aug 22nd, 2014 - 09:36 am 0
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