Argentina: U.S. orders generate more suits, prevent payment collection

By Caroline Salls

Pittsburgh, Nov. 10 – The Republic of Argentina said orders from U.S. district judge Thomas Griesa have generated more litigation against the country and unlawfully prevented bondholders from collecting restructured funds.

According to a news release, Argentina sent a letter to Griesa in response to one sent by “vulture” funds counsel Robert Cohen on Oct. 8.

Argentina said Griesa promised an end to legal actions, but, in fact, his orders have led to more lawsuits.

Specifically, in addition to the $1.6 billion of debt already subject to the orders, Argentina said 102 more plaintiffs have requested measures.

Argentina said this proves that Griesa’s orders are unenforceable, and that a solution must include all bondholders who did not enter into swap agreements in previous years.

As previously reported, Griesa approved a Sept. 30 bond payment on a one-time basis in September, the second time he approved a one-time payment on the bonds, although Argentina said substantial issues related to the judge’s previous ruling on the bonds remained unresolved.

According to a Sept. 29 news release, evidence and arguments presented by Citibank and Argentina repeatedly showed that Argentine law bonds are debt and fall outside of the scope of Griesa’s jurisdiction.

Argentina minister of finance Axel Kicillof said in August that the Argentine Congress cannot allow meddling from other jurisdictions, referencing a “vulture” hedge fund strategy resulting from a ruling made in July by Griesa.

The minister of finance said the vulture funds want to break down Argentina’s restructuring and put in an “untenable situation.”

Kicillof said the funds want to block any payments that do not comply with Griesa’s ruling, causing strong economic and political pressure.

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