UPDATE 2-Argentina's euro bondholders ask U.S. judge to suspend debt ruling
(Recasts with bondholder's motion)
By Daniel Bases and Jorge Otaola
NEW YORK/BUENOS AIRES, July 29 (Reuters) - Holders of Argentina's euro-denominated exchange bonds urged a U.S. judge on Tuesday to suspend a debt ruling in favor of holdout investors suing the country that risks toppling Latin America's No. 3 economy into default.
The countdown clock is ticking. Argentina has until the end of Wednesday to either fulfill a ruling by U.S. District Judge Thomas Griesa to pay hedge funds that rejected its restructuring in full on their defaulted bonds, cut a deal or obtain a stay.
If not, Griesa will prevent Argentina from making the July 30 deadline for a coupon payment on bonds exchanged in its 2005 and 2010 debt swaps.
Argentine debt negotiators met on Tuesday in New York with a court-appointed mediator for extensive negotiations in an attempt to cut a deal to avoid what is being called a "Griefault" on social media.
"This Court can facilitate a settlement - and avoid a potential default - by issuing a temporary stay," the bondholders said in a memorandum of law justifying their motion.
Griesa previously rejected Argentina's request for a stay but could respond differently to bondholders.
"A stay will promote and encourage a global settlement. A stay will not prejudice the plaintiffs," the bondholders said. Continuación...