Date
18 August 2017
Argentina has until July 30 to reach a deal with the holdout investors or face a new default. Photo: Bloomberg
Argentina has until July 30 to reach a deal with the holdout investors or face a new default. Photo: Bloomberg

Argentina asks US judge to put debt payment order on hold

Argentina has asked a New York federal judge to put on hold a ruling requiring it to pay bondholders who did not participate in debt restructurings following the country’s 2002 default, Reuters reported.

The South American nation said any deal must take into account other bondholders and factor in a clause in its restructured bonds that could open it up to further liability, the report said.

“As those risks remain, so does the necessity and appropriateness of a stay,” the country’s lawyers said.

US District Judge Thomas Griesa has blocked the country’s attempt to make a June 30 bond payment, saying it must also comply with an order to pay US$1.5 billion to hedge funds and other holders of defaulted bonds that sued for full repayment.

Argentina has until July 30 to reach a deal with the holdout investors or face a new default.

In Monday’s court filing, Argentina argued that the holdouts should not be allowed to put at risk its prior restructurings. Claims of holdout creditors total as much as US$20 billion globally, the report said.

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