UPDATE 1-U.S. court rejects creditors' bid for Argentine funds held by BNY Mellon
(Adds details from ruling, no immediate comment from parties, byline)
By Joseph Ax
NEW YORK Oct 5 (Reuters) - A U.S. appeals court on Monday refused to force Bank of New York Mellon Corp to turn over to holders of defaulted Argentine bonds any of the $539 million the country deposited in 2014 to pay creditors who participated in its past restructurings.
The 2nd U.S. Circuit Court of Appeals in New York upheld an October 2014 ruling from U.S. District Judge Thomas Griesa, agreeing that the plaintiffs were not entitled to possess the funds and did not have rights to the money superior to that of BNY Mellon.
"At most, then, the (Argentine) Republic's transfer was a preference among creditors," a three-judge panel wrote. "But under New York law, preferring one creditor over another is neither actually nor constructively fraudulent."
Anthony Costantini, a lawyer for the majority of the bondholders seeking payment, said the court failed to take into account additional legal arguments he made in a letter filed last week.
"We will make a motion for rehearing," he said.
A lawyer for Argentina, Carmine Boccuzzi, said in an email, "The Court of Appeals correctly recognized that these are exchange bondholder funds to which holdouts have no claim."
A lawyer and a spokesman for BNY Mellon did not immediately respond to requests for comment. Continuación...