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Griesa invokes Foreign sovereign immunities act in Argentine bonds dispute

Wednesday, October 29th 2014 - 07:01 UTC
Full article 25 comments
“In dealing with what can be subjected to turnover, the FSIA simply does not mention property located outside the United States,” Griesa wrote. “In dealing with what can be subjected to turnover, the FSIA simply does not mention property located outside the United States,” Griesa wrote.

US judge refused on Tuesday to require Bank of New York Mellon Corp to turn over to holders of defaulted Argentine bonds any of the 539 million dollars the country deposited to pay creditors who participated in its past restructurings.

 US District Judge Thomas Griesa in New York said since the funds were outside the United States in BNY Mellon's accounts at Argentina's central bank, turnover would not be authorized under the Foreign Sovereign Immunities Act.

“In dealing with what can be subjected to turnover, the FSIA simply does not mention property located outside the United States,” Griesa wrote.

The motion was brought largely by various Italian citizens who purchased Argentina's bonds. Representatives for the bank, Argentina and the holdout bondholders seeking the handover did not respond to requests for comment.

The ruling came a week after a US appeals court dismissed Argentina's appeal of an order directing BNY Mellon to hold onto the 539 million, which the country deposited in June for bondholders who participated in two sovereign debt restructurings.

Griesa's decision to block the payment, which he called “illegal,” sent Argentina on a course to technical default in July after no settlement was reached.

Top Comments

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  • ChrisR

    After more wriggling the foot of justice squashed the argies again.

    I thought they said they would pay what they owed or was TMBOA just lying through her teeth again?

    GO, GO GRIESA!

    Oct 29th, 2014 - 10:26 am 0
  • Captain Poppy

    This is the actions of a judge on the “take”? Come on you wet nursed trolls......

    Oct 29th, 2014 - 10:28 am 0
  • Orbit

    @2 Indeed... he's just coolly and calmly applying the law ... no histrionics in front of the UN, no flapping of arms at the US gov't, no Timerman'esque clucking and bleating at random impotent organisations.

    Just the law as applicable to the case.

    Oct 29th, 2014 - 02:10 pm 0
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