UPDATE 1-Argentina to appeal U.S. judge's order on bond payment

Fri Aug 29, 2014 7:36pm EDT

(Adds background about BONY case)

NEW YORK Aug 29 (Reuters) - Argentina said on Friday it would appeal a U.S. judge's decision declaring illegal a $539 million payment the country deposited with Bank of New York Mellon Corp for its restructured bondholders.

BNY Mellon in June obeyed a U.S. court ruling to block the $539 million interest payment on debt that was restructured following Argentina's record 2002 debt default, paving the way for the country's second default in 12 years in July.

Argentina said on Tuesday it had stripped Bank of New York Mellon's authorization to operate in the South American country.

In another court filing, Argentina said it would also appeal a separate order by U.S. District Judge Thomas Griesa in New York that enjoined payments on U.S. dollar-denominated bonds governed by Argentine law. (Reporting by Nate Raymond in New York. Additional reporting by Megan Davies.; Editing by Chris Reese and Andre Grenon)

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