Argentina told New York district judge Thomas Griesa that bondholders filed 25 lawsuits since June, when the judge ordered blocking the country's from paying its restructured debt without also paying a group of holdouts, Bloomberg news has reported.
With the initiative, the funds investors seek to profit from his order, filing “me too” suits, many of which have already won judgments on the defaulted bonds. The claim sums up to 6.5 billion dollars.
One of the lawyers defending Argentina's position, Carmine Boccuzzi, told Griesa in a letter on Thursday that holders of Argentina’s defaulted debt will seek to have his 2012 order applied in their cases, and argued Argentina cannot be compelled to paying in full.
“There can be no equitable basis for seeking to compel the Republic, whose reserves are approximately 28bn and must be used for critical macroeconomic purposes, to do the impossible by paying in full its holdout debt,” Boccuzzi said in the letter.
That is the sum that will be on the negotiation table of Special Master Daniel Pollack whom Judge Griesa has awarded 'special powers' to negotiate a payment agreement with all the creditors that have turned up at his court and hold 'similar' conditions to those of Paul Singer's NML Capital fund.