Argentine holdout bond creditors to support Citi's stay request -source
By Nate Raymond
NEW YORK, Sept 26 (Reuters) - Creditors suing Argentina over defaulted debt will not object to Citigroup Inc's request to put on hold a U.S. court order preventing it from processing an imminent payment issued under Argentina's local laws, a source said Friday.
At a hearing Friday afternoon, Citigroup is expected to ask U.S. District Judge Thomas Griesa to reconsider or at least stay his July ruling barring the bank from processing the payments, including one for $5 million due Sept. 30.
Citigroup has said it faces regulatory and criminal sanctions by Argentina if it cannot process the interest payment on U.S. dollar-denominated bonds issued under Argentine law following the country's 2002 default.
Bondholders who did not participate in Argentina's past restructurings, including Elliott Management's NML Capital Ltd and Aurelius Capital Management, have opposed reversing Griesa's July order.
But with the Sept. 30 deadline looming, holdout bondholders will not oppose Citigroup's request for more time, a person familiar with the matter said.
A stay would allow Citigroup to make a one-off payment and meet the deadline, and leave it three months before the next payment by Argentina on Dec. 31 for $262 million is due to litigate over the order, the person said.
A motion made public Friday by NML still argued that Citi was not entitled to a stay. But the language in the motion does not prevent the holdouts from offering to support the stay, which they have, the person said.
A spokeswoman for Citigroup declined comment. A U.S. lawyer for Argentina did not respond to a request for comment. Continuación...