Argentina has capacity to pay holdouts - investors' lawyer

NEW YORK Wed Feb 27, 2013 3:19pm EST

NEW YORK Feb 27 (Reuters) - A lawyer for so-called holdout investors at odds with Argentina's government said on Wednesday that there is "no question" the country has the capacity to pay them.

The 2nd U.S. Circuit Court of Appeals was hearing oral arguments on whether to reverse an order that the Argentine government pay $1.3 billion to a group of dissident bondholders stemming from the country's 2002 default. The court's findings could have wide impact on global debt markets.

"Argentina can pay it, there's no question about that," said Ted Olson, a lawyer for NML Capital Ltd, an affiliate of Elliott Management.

He also said NML was not seeking a court order that would deprive the investors who did accept restructured debt from collecting their bond payments.