Citigroup to seek pause of order blocking Argentine bond payment
By Nate Raymond
NEW YORK, Sept 22 (Reuters) - Citigroup Inc plans to ask a U.S. judge to put on hold an order barring it from processing payments on $8.4 billion in bonds issued under Argentina's local laws following its 2002 default.
A lawyer for the bank told U.S. District Judge Thomas Griesa of its plans during a hearing in New York on Friday just hours after a federal appeals court dismissed its appeal of Griesa's July injunction.
"As your honor knows, we are facing a payment deadline of Sept. 30, so we are likely also to move for a stay," said Karen Wagner, a lawyer for Citigroup, according to a transcript obtained on Monday.
Argentina defaulted again in July after refusing to honor court orders to pay $1.33 billion plus interest to bondholders suing for full payment on defaulted bonds.
Citigroup has said it faces regulatory and criminal sanctions by Argentina if it cannot process a $5 million interest payment due to bondholders by Sept. 30.
No other parties were present at Friday's hearing, and Wagner said, as a result, she would not give more detail about the substance of Citi's positions. But she said the bank planned to ask Griesa to reconsider his ruling or modify the injunction.
Citibank has argued that it should be able to process payments it received from Argentina on bonds issued under local law. Griesa, however, on July 28 blocked Citi from processing payments on U.S. dollar-denominated bonds issued under Argentine law.
After Citigroup and Argentina appealed, the 2nd U.S. Circuit Court of Appeals in New York on Friday ruled it did not have jurisdiction. Continuación...