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Judge Griesa rules in favor of 'me too' Argentine bond holders suing for full payment

Friday, October 23rd 2015 - 08:39 UTC
Full article 35 comments
“Me too” holdout bondholders seek the same relief as several hedge funds who had secured a ruling ordering Argentina to pay it $1.33 billion plus interest. “Me too” holdout bondholders seek the same relief as several hedge funds who had secured a ruling ordering Argentina to pay it $1.33 billion plus interest.

U.S. judge ruled on Thursday that holders of $234 million in defaulted Argentine bonds suing for full payment had been treated unequally to creditors who had participated in the country's past restructurings.

 U.S. District Judge Thomas Griesa in Manhattan ruled that Argentina had made no new arguments to justify treating the creditors in the 15 lawsuits differently than several similar holdouts who held $5.4 billion of defaulted bonds that he granted similar relief to in June.

These holdout bondholders are often called “me-too” creditors for seeking the same relief as several hedge funds who had secured a ruling ordering Argentina to pay it $1.33 billion plus interest.

The latest batch of creditors include Trinity Investments Limited and MCHA Holdings LLC and hold bonds totaling about $235 million in principal, according to court papers.

Anthony Costantini, a lawyer for creditors including Trinity and MCHA, called the ruling “gratifying.” A lawyer for Argentina had no immediate comment.

The ruling marked the latest development in long-running litigation by creditors seeking full repayment on Argentine bonds following its $100 billion default in 2002.

Those creditors spurned Argentina's 2005 and 2010 debt restructurings, which resulted in 92 percent of its defaulted debt being swapped and investors being paid less than 30 cents on the dollar.

The country defaulted again in July 2014 after refusing to honor court orders to pay $1.33 billion plus interest to holdouts including Elliott Management's NML Capital Ltd when it paid holders of restructured bonds.

Griesa has scheduled a hearing for next Wednesday to determine whether to expand that order to apply to other creditors who he ruled were not treated equally as the restructured bond holders.

Top Comments

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  • ChrisR

    Go Griesa, go!

    This Judge just won't lie down and play dead just because TMBOA thinks she can tell him what to do.

    Scioli needs to deal with this in a positive way if he intends to make TDC less dark.

    LOL

    Oct 23rd, 2015 - 12:20 pm 0
  • Captain Poppy

    While this is hardly in support of the government, because I loath the Kirchner's and her croonies. If I were Argentina I would take all the debt the the military junta borrowed and say ....FUCK YOU”@! Who in their right minds would lend money to outright dictators? My legal position would be that the debt was illegally obtained via coercive measures of an illegally ruling party. All this debt shit is getting old and I say fuck it......it's time to move on. It's a few billion......who cares.

    Oct 23rd, 2015 - 01:10 pm 0
  • Chicureo

    ChrisR

    Totally agree! Griesa rocks!

    Captain

    Try that strategy with your credit card companies...

    Due to bad credit ratings, Argentina currently is paying loan shark rates in barter agreements to buy third rate fighter jets, frigates, used Soviet era ice breakers, etc...

    Oct 23rd, 2015 - 01:26 pm 0
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