MercoPress, en Español

Montevideo, September 23rd 2023 - 18:58 UTC



Argentina appeals New York Judge Griesa's order regarding banks' disclosures

Saturday, October 26th 2013 - 15:54 UTC
Full article 14 comments
Judge Griesa wanted banks to turn over information on Argentina's assets Judge Griesa wanted banks to turn over information on Argentina's assets

The Argentine government yesterday appealed an order by US Judge Thomas Griesa who asked some private banks to turn over information about Argentina’s assets abroad. The case had been started by hedge fund Elliott Management Corp’s NML Capital Ltd which is demanding in court full 100% payment of Argentine sovereign bonds face value.

The holdout funds rejected Argentina's restructuring and debt swaps from 2005 and 2010, which have been accepted by 93% of bond holders and have since been paid as stipulated in agreed conditions.

In a court filing, the Argentine government said it would ask the US Court of Appeals for the 2nd Circuit to overturn US District Judge Griesa’s September 25 order for Citibank, Deutsche Bank, JPMorgan Chase & Co and other banks to hand over the data to Elliott Management Corp’s NML Capital Ltd.

The banks ordered to turn over information on Argentina’s assets also include HSBC Holdings , Standard Chartered Plc (STAN), UBS AG, Wells Fargo & Co and BNP Paribas SA.

Griesa, in his September 25 ruling had also denied Argentina’s bid to throw out a lawsuit in which NML Capital and EM Ltd. sought a court declaration stating that the country’s Central Bank was an “alter ego” for the country and liable to pay them almost 2.6 billion dollars.

Griesa did not rule on the case’s merits, and said a finding that Argentina and the Central Bank were legally the same “could really have effects or implications beyond what I would intend.”

But citing “irregularities” in Argentina’s conduct, Griesa said at a court hearing that “there could be some account or some assets of the BCRA that could be legitimately attached or executed on to satisfy the judgment debts here.”

The Argentine Central Bank appealed Griesa’s ruling through US firm Sullivan & Cromwell and the litigation could last several months.

Top Comments

Disclaimer & comment rules
  • yankeeboy

    I think the stay will be lifted shortly.
    Rut Ro

    Oct 26th, 2013 - 07:31 pm 0
  • Conqueror

    Dear, dear, dear. Argieland is getting more desperate by the day. The clear objective is to tie the matter up in so many appeals and reviews that years will pass. A question is whether these banks, U.S., British, Swiss, French, German, will also ignore the court? Probably not a good idea. And argieland is finding that it can't claim the “sovereign immunity” it gave up when it issued the bonds. I suppose we will have to accept that the argies will fight all the way. I do hope the lawyers are billing them on a daily basis. Otherwise they will join the long list of people to whom the argies owe money.

    Oct 27th, 2013 - 09:22 am 0
  • ChrisR

    If the lawyers have any sense at all they will be using an escrow service and when the money runs out their services stop until if and when the escrow is in credit.

    Oct 27th, 2013 - 11:18 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!