Judge Griesa will wait for appeals court ruling before acting on holdouts' Citibank subpoena

Thursday, September 11th 2014 - 04:48 UTC

Full article 6 comments

“It almost goes without saying whatever the court of appeals decides will have an effect on the issues we're dealing with here,” Griesa said.

NML Capital Ltd. Jay Newman and his lawyer Robert Cohen after the meeting with Judge Griesa (Pic. A. Groisman)

US district judge Thomas Griesa has said he would wait for a decision on a pending appeal before ordering Citigroup to comply with a subpoena served by holdout investors seeking details of any threats from Argentina to process payments the court had blocked.

Griesa at a hearing on Wednesday in New York acknowledged Argentina may be undertaking efforts to force Citigroup to violate orders he previously issued as part of litigation that led to the country's default in July.

But the judge said he would wait to rule on the subpoena request until after a federal appeals court next week considers whether to uphold his decision blocking Citigroup from processing the payments on US dollar-denominated bonds issued under Argentine law.

The subpoena was issued by Elliott Management's NML Capital Ltd, which has been suing for full payment on bonds in default since 2002.

“It almost goes without saying whatever the court of appeals decides will have an effect on the issues we're dealing with here,” Griesa said.

Griesa also denied to order Citigroup to comply with its subpoena to turn over info on Argentine government assets. He said he won't order Citibank to provide discovery at NML request as long as Citi's appeal, which is due on September 18, remains pending.

Categories: Economy, Politics, Argentina, International, Uruguay.

Tags: Argentina, Citibank subpoena, Citigroup, Elliot Management fund, holdout hedge funds, Jay Newman, NML Capital Limited, Robert Cohen, Thomas Griesa.

Top Comments

Disclaimer & comment rules

hurricane
He might as well wait for the appeals court, but he won't wait for anyone to slap a contempt of court on them after they pass the new law changing banks to pay the new bond holders. Even the bond holders don't want this. Taught stupidity always has consequences.
Sep 11th, 2014 - 12:09 pm 0
Briton
Playing on 3rd world sympathy, Argentina should be made to pay,

or remove her privileges,
removal from the none permanent seat at the UN can go for a start.
Sep 11th, 2014 - 12:57 pm 0
ilsen
It is true the bond holders don't want the changes proposed by Argentina. The legal consequences could provide all sorts of entanglements.
Sep 11th, 2014 - 01:09 pm 0

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