NEW YORK, July 31 (IFR) - Bank of New York Mellon (BNY) sent
a formal letter Thursday to holders of Argentina's exchange
bonds essentially confirming that the sovereign had defaulted.
The letter confirmed that BNY, acting as trustee, was still
holding the funds that would have covered the payment due by
July 30 in the wake of a US court order not to release the
That order came from Judge Thomas Griesa, who ordered
Argentina to pay holdout creditors in full when it made its next
payment to holders of the exchange, or restructured, bonds.
"Pursuant to the court's earlier orders, the trustee
continues to hold the funds," said the letter, which was seen by
"The funds are held pending any further court order. The
nature and timing of any future court order regarding the funds
are not yet known."
Argentina slipped into its second default since 2001 when
the midnight Wednesday deadline to make the payment to the
exchange holders passed without payment being made.
(Reporting by Davide Scigliuzzo; Writing by Marc Carnegie;
Editing by Natalie Harrison)