UPDATE 1-U.S. judge to hear latest motions in Argentina debt case July 22

miércoles 16 de julio de 2014 17:55 GYT
 

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By Daniel Bases

NEW YORK, July 16 (Reuters) - A U.S. judge said in New York on Wednesday that he would hear arguments next Tuesday related to the banks and payment agents caught up in Argentina's sovereign debt case as a potential default looms at the end of the month.

U.S. District Judge Thomas Griesa has received motions from the Bank of New York Mellon , the indentured trustee that currently holds a deposit from the government of $539 million in its account at the Central Bank of Argentina, on what it should do with the money.

In addition, the lead holdout, NML Capital Ltd, a subsidiary of Elliott Capital Management, has filed a motion, as have bondholders with euro-denominated Argentine debt, payment systems Euroclear Bank, Clearstream Banking and JPMorgan Chase & Co.

The holdouts are investors who spurned the terms of Argentina's 2005 and 2010 debt restructuring following a $100 billion government default in 2002. Griesa has ordered that Argentina either pay the holdouts $1.33 billion plus accrued interest at the same time it pays restructured bondholders or no one should be paid.

All sides face a July 30 deadline for Argentina to either pay up, reach a deal with the holdouts or face default.

The two sides have met separately with court-appointed mediator Daniel Pollack in New York but have yet to sit down and have a face-to-face discussion, although both profess to want to negotiate.

Argentina's U.S. dollar-denominated debt cut its losses after word of the hearing came out given no further talks with Pollack were publicly scheduled. The 2033 Discount bonds snapped higher, to a small gain of 0.07 point in price to bid 89.16 points. That drove the yield down to 9.7 percent from 11.30 percent.   Continuación...