UPDATE 3-Argentina shelves dollar-denominated bond sale -IFR sources
(Adds comment, details of court hearing)
By Davide Scigliuzzo
NEW YORK Feb 26 (Reuters) - Argentina has suspended a planned sale of dollar-denominated bonds intended to raise at least $2 billion, two investors with direct knowledge of the deal told Thomson Reuters IFR on Thursday.
The suspension, if lengthy, could hamper Argentina's financing of bonds worth over $6 billion that mature later in the year as the government fights to shore up low foreign reserves.
The decision to suspend the sale came after U.S. District Judge Thomas Griesa ordered Deutsche Bank and JPMorgan Chase & Co to hand over documents relevant to the Bonar 24 bond sale.
Griesa said late Wednesday, according to a court transcript of an emergency hearing on Wednesday, that the order he signed did not restrain any transaction. "It simply asks for discovery," Griesa said.
The South American country, a pariah in global debt markets for more than a decade, said on Wednesday it had a "window of opportunity" to raise debt internationally and began marketing the new Bonar 24 bonds.
The proposed reopening of the sale of new Bonar 24 bonds, with a coupon of 8.75 percent, was estimated to be at least $2 billion, according to the hearing transcript that cited a letter to potential investors prepared by the banks.
Lawyers for JPMorgan said in court that the bond sale was merely "contemplated," despite the contention by lawyers for the hedge funds it was imminent. Continuación...