Holders of about $700 million of defaulted Argentine bonds today filed papers in Manhattan federal court asking U.S. District Judge Thomas P. Griesa to order Argentina to make payments into escrow accounts on behalf of the investors represented in those suits. Because the nation is appealing orders defining who is included in the investors classes, the scope of the claims isn’t clear.
The request came as Argentina faces a possible July 30 default if it fails to reach an agreement with the NML group that would permit it to make a required interest payment on its restructured bonds.
In a hearing June 27, Griesa denied a request by “me too” bondholders in five cases for orders similar to the one in the NML case.
“NML and Aurelius are not the only parties who may have rights under the pari passu clause,” Griesa said in the hearing. “But at this point, in order to have some sensible organization of settlement discussions and so forth, it seems to me that it is not a good thing for me to start signing additional orders.”
The case is Seijas v. Republic of Argentina, 14-01444, U.S. District Court, Southern District of New York (Manhattan). Full article here…