NEW YORK, March 30 (IFR) - Clearstream will not process coupon payments on some of Argentina’s local-law exchange bonds due on Tuesday, the clearing house said in a statement on Monday.
“Clearstream has advised its customers that it does not intend to effect any payment that it may receive in respect of securities falling subject to the injunction,” a Clearstream spokesperson told IFR separately on Monday, referring to a US court order halting the payments.
Holdouts led by Elliott Management’s NML Capital unit have won a series of legal rulings against Argentina, which ultimately led the country’s second default in a little over a decade last year, when Griesa blocked coupon payments on nearly US$30bn of restructured bonds.
Earlier this month, Griesa said some US dollar, local-law notes were also covered by an earlier injunction that prevents Argentina from servicing its restructured bonds unless it also makes holdout creditors whole.
Reporting by Davide Scigliuzzo; Editing by Jack Doran