NEW YORK Nov 26 Investors holding $1 billion
worth of restructured Argentine debt filed an emergency motion
to the U.S. 2nd Circuit Court of Appeals on Monday hoping it
will overrule a decision they fear will trigger another default
and prevent payment on their bonds.
U.S. District Judge Thomas Griesa ordered last Wednesday
that Argentina immediately pay a separate group of holdout
investors who rejected two debt restructuring offers the $1.33
billion in judgments they have won in court, a stinging blow to
the country's efforts to overcome a 2002 debt crisis.
"The motion would ensure that interest payments to the
bondholders continue while the appeal is decided. The Exchange
bondholders agreed to take under 30 cents on the dollar to
support Argentina's debt restructuring in accordance with US
Government and international fiscal policy," David Boies, a
lawyer representing the investors who participated in the
exchanges, said in a statement.
The holdout investors in the case are led by NML Capital, an
affiliate of Elliott Management, and Aurelius Capital
Management, both based in New York.
Griesa's order means Argentina must deposit the money into
an escrow account by Dec. 15, which protects both sides of the
case pending a final decision by the U.S. 2nd Circuit Court of
At stake for all exchange bondholders is a potential
technical default on approximately $24 billion worth of debt
issued in the 2005 and 2010 exchanges. Principal and interest
payments due those bondholders next month total over $3 billion.