UPDATE 3-Argentina threatened with contempt order by U.S. judge
(Adds analysis on impact of possible contempt order)
By Joseph Ax and Andrew Chung
NEW YORK/BUENOS AIRES Aug 8 (Reuters) - The U.S. judge in Argentina's long-running debt battle with hedge funds threatened a contempt-of-court order on Friday if the nation did not stop issuing false statements about having made a required debt payment on restructured sovereign bonds.
U.S. District Judge Thomas Griesa in Manhattan railed at Argentina's lawyers from Cleary Gottlieb Steen & Hamilton following the publication of another so-called legal notice insisting the government has met its payment requirements and was therefore not in default.
Griesa said these notices were "regularly" and "systematically" omitting the vital obligations of the Republic.
Holding a newspaper copy of the notice, which appeared Thursday, Griesa said if the false statements did not stop, a contempt of court order will become necessary.
Griesa said he was not going to go further than a warning for now, but that could change. He repeated that the two sides must continue negotiating with the aide of mediator Daniel Pollack.
"We will continue to work tirelessly to defend the rights of Argentina," Economy Minister Axel Kicillof said on public television in Argentina, adding that at the hearing in New York on Friday, "Judge Griesa did not resolve anything.
"He created this confusing and extraordinary situation," said Kicillof, who also played down concerns the case would cripple investment in Argentina. Continuación...