NEW YORK, July 29 (Reuters) - Holders of Argentina’s euro-denominated exchange bonds urged U.S. District Judge Thomas Griesa on Tuesday to issue a last-minute stay on his debt ruling that risks toppling the South American country into default, a court motion showed.
“A default would undo much of the work this Court has accomplished over the last ten years and extend litigation here and around the world for years on end,” the bondholders said in a memorandum of law justifying the motion.
The euro bondholders said they had been in touch with other bondholders who, like them, would be willing to waive the RUFO clause that prevents Argentina from settling with holdout investors on terms better than those accepted by the exchanged bondholders.
“Obtaining a waiver of the RUFO clause, however, will take time,” the bondholders wrote. “This Court can facilitate a settlement - and avoid a potential default - by issuing a temporary stay.” (Reporting by Jonathan Stempel; Writing by Sarah Marsh; Editing by Richard Lough)