(Adds Argentina appeal of June 20 ruling)
By Nate Raymond
NEW YORK, July 21 Argentina asked a U.S. judge
on Monday to put on hold an order requiring it to pay
bondholders who did not participate in debt restructurings
following the country's 2002 default, while it seeks a "global
Ahead of a July 30 deadline to reach a deal or face a new
default, Argentina filed papers asking a New York federal judge
to stay a ruling that it pay the holdout investors $1.33 billion
Argentina, which has been in settlement talks, 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
"As those risks remain, so does the necessity and
appropriateness of a stay," Argentina's lawyers wrote.
The request is not the first time Argentina has asked for a
stay, which U.S. District Judge Thomas Griesa has previously
Argentina separately filed a notice of appeal of a June 20
ruling by Griesa that prevented it from going through with a
proposal by the country's economy minister to swap bonds
governed by New York law for those under local jurisdiction.
On Tuesday, Griesa is expected to hear a range of requests
by Argentina, bondholders and financial institutions over how to
enforce his ruling requiring payment to the holdouts.
The payment to the holdouts, led by Elliott Management's NML
Capital Ltd and Aurelius Capital Management, was due at the time
of Argentina's next payment to the 92 percent of its creditors
who participated in debt swaps in 2005 and 2010 following the
country's $100 billion default.
Argentina last month attempted to make a $539 million
payment to the restructured bondholders due June 30. But Griesa
deemed it a violation of his order and told Bank of New York
Mellon Corp to return the money.
A 30-day grace period is now in effect before a default can
In Monday's court filing, Argentina renewed arguments that
the holdouts should not be allowed to put at risk its prior
The country's lawyers said any deal needed to resolve not
just claims by the plaintiffs but also those of other holdout
creditors. Holdout creditor claims total as much as $20 billion
globally, Argentina said.
Argentina argued any resolution must also be consistent with
a clause in the restructured bonds' contracts that would open it
up to billions of dollars in additional claims if triggered
before it expires at the end of this year.
Argentina said it continues to participate in settlement
talks before a court-appointed mediator, Daniel Pollack.
"But that process must take into account these legal and
factual constraints," Argentina's lawyers wrote.
NML did not respond to requests for comment and Aurelius had
no immediate comment Monday.
(Reporting by Nate Raymond in New York; Editing by Lisa