London court seeks Argentina creditors' say on debt interest payments

jueves 6 de noviembre de 2014 13:42 GYT

By Nishant Kumar

LONDON Nov 6 (Reuters) - A London court gave Argentinian "holdout creditors" a two-week window on Thursday to challenge declarations sought by a powerful group of investors in a dispute over interest payments worth about 226 million euros ($280.49 million).

The payments involve euro-denominated Argentinian bonds.

Investment firms including George Soros's Quantum Partners, Knighthead Master Fund and Hayman Capital, have filed a lawsuit in the UK asking the court to declare that the interest payments are subject to English law and that any attempt by a foreign court to modify contracts governing them would be ineffective.

The litigations stem from Argentina's historic sovereign debt default in early 2002.

The holdout creditors are fighting another legal battle in New York and Quantum and the other investors want to make sure that any U.S. ruling does not affect their interest payments.

Although defendant Bank of New York Mellon Corp has opposed the UK case, Judge Guy Newey said there was broad agreement between the two parties that the payments are subject to English law.

But he added: "I might add that the very fact that the bank has thought it worth opposing the making of the declaration (while not disputing its substance) tends to confirm me in the view that the declaration would serve a useful purpose."

He told holdout creditors, investors who did not take part in the country's debt restructurings of 2005 and 2010 and sued for full repayment, to speak with legal advisors by Nov. 21 if they wished to intervene.   Continuación...