UPDATE 4-Argentina euro debt tussle turns to New York after London ruling

viernes 13 de febrero de 2015 18:54 GYT
 

* Concerns 225 mln euros in debt interest

* Follows U.S. court block to any payments

* Claimants want U.S. courts to reconsider (Adds comment from Argentine economy ministry)

By Simon Jessop, Carolyn Cohn and Daniel Bases

NEW YORK/LONDON, Feb 13 (Reuters) - Investors owning euro-denominated Argentine government bonds, currently in default, won a partial victory in a London court on Friday after a UK judge ruled interest payments on the debt were governed by English law.

However, in a case that has boiled in the U.S. courts for over a decade, the judge declined to order that the 225 million euros ($257 million) held by trustee Bank of New York Mellon be distributed to the bondholders.

This decision throws the spotlight back on the U.S. court that had originally blocked the payments because BNY Mellon is subject to the jurisdiction of U.S. law.

Holders of euro-denominated Argentinian bonds now want U.S. courts to take a fresh look at the ruling, but holdout investors in New York said the decision did nothing to weaken the U.S. injunction blocking payment.

In his decision on Friday, Justice David Richards, while granting that the interest payments came under English law, also said: "It would be quite wrong for this court to make, and I do not make, any comment on such orders as may be appropriate and their effect as a matter of U.S. law."   Continuación...