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Judge Griesa summons Argentina and holdouts for a Friday hearing

Thursday, July 31st 2014 - 22:10 UTC
Full article 42 comments
The judge's court filing said Friday morning the case will be “regarding the recent default by the Republic of Argentina,” The judge's court filing said Friday morning the case will be “regarding the recent default by the Republic of Argentina,”

After negotiations between the Argentine government and the speculative funds, led by US Special Master Daniel Pollack failed, New York District Judge Thomas Griesa called for a new hearing between the parties for Friday at 12 pm (Argentina time).

 The US judge overseeing Argentina's dispute with a group of creditors said a hearing he has set for Friday morning in the case will be “regarding the recent default by the Republic of Argentina,” according to a court filing posted on Thursday.

On Wednesday, Argentina and a group of hedge funds holding some of its bonds failed to come to terms on a deal to avoid the country falling into default on its debt for the second time in more than 12 years.

A court's official informed on Thursday holdout representatives and Argentine officials will be part of the meeting.

Argentina's Economy minister Axel Kicillof and main negotiator of the failed talks, said he did not understand the workings of the US Justice system, since 1% of holdouts are impeding that 92% of bondholders who accepted the restructuring terms, from collecting the monies deposited by Argentina.

In effect the Bank of New York Mellon (BNY) sent a formal letter to holders of Argentina's exchange bonds essentially confirming that the sovereign had defaulted.

The letter confirmed that BNY, acting as trustee, was still holding the funds that would have covered the payment due by July 30 in the wake of a US court order not to release the funds.

That order came from Judge Thomas Griesa, who ordered Argentina to pay holdout creditors in full when it made its next payment to holders of the exchange, or restructured bonds.

“Pursuant to the court's earlier orders, the trustee continues to hold the funds,” said the letter.

“The funds are held pending any further court order. The nature and timing of any future court order regarding the funds are not yet known,” it added.

Top Comments

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  • Klingon

    Maybe this is Axel's plan to travel back in forth and eventually he will have enough air points to pay off the debt.
    Gresia needs to grow a sack and tell the vultures to stop being such greedy assholes and find some middle ground.

    Jul 31st, 2014 - 10:33 pm 0
  • Alistair Nigel (EUian)

    Uhh.... Griesa is part of the Vulture fund lobby.

    There is no separation between US justice courts and the US financial industry. They are one and the same and this was a fact way before Griesa made his rulings against Argentina.

    US courts ALWAYS side with banks and against (even) American citizens.

    Thus all the bailouts of banks that were approved, while courts simultaneously approved taking away the homes of poor people who paid taxes and thus helped bailed out the very banks who were now taking away their homes. So the poor bailed out the banks, who then denied bailing out the poor and took away their homes, and courts approved it every time (since in the US liquidation of homes goes through a court process).

    It's one fucked up culture and mentality.

    Jul 31st, 2014 - 10:43 pm 0
  • yankeeboy

    There's no negotiating judgments. You pay what is due in cash and immediately.

    ick that nasty old lithium soaked hag and the f*ckwit retard Axel have been squealing for an hour or two about getting shafted by the Gringos.

    Can't they just shut up and realize they lost and have to pay?

    Jul 31st, 2014 - 10:45 pm 0
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