German courts have rejected a petition from bondholders related to the Argentine debt 'default', using a similar interpretation based in the 'pari passu' clause that hedge funds pursued in New York which was accepted by Judge Thomas Griesa.
”The German judiciary today (Thursday) rejected the first petition from holders of defaulted Argentine bonds, read an official Argentine government statement confirming the ruling.
On Wednesday, a Belgian court had ordered the lifting of the embargo on Argentine diplomatic bank accounts, which had been requested by financial speculators NML, whose request to cash in their 'defaulted' bonds was rejected.
The German bondholders, identified under the name 'Laxhuber', had recently managed a favourable judgement for the payment of 1.5 million Euros plus interest,” the government recalled.
The German creditors asked for additional payments on top of the sentence in their favour, which were rejected.
Argentina restructured 93% of its debt due to the moratorium of almost 100bn dollars declared in the middle of the 2001 crisis, but a remnant of 7% of creditor and bondholders that took the country to trial, in order to recover 100% of capital plus interest, in one single payment without refinancing.