Holdout could ask US judge to suspend Argentina debt ruling-La Nacion
BUENOS AIRES, July 24 (Reuters) - One of the hedge funds suing Argentina for full repayment of its defaulted sovereign debt could call on Thursday for a suspension of the U.S. court ruling pushing it towards default, an Argentine daily wrote citing unnamed official sources.
La Nacion wrote that Elliott Management's NML Capital Ltd would likely ask U.S. District Judge Thomas Griesa to reinstate a stay on his ruling for Argentina to pay it and other holdouts who did not participate in its debt restructuring back in full.
Griesa has said Argentina may not make its next coupon payment without fulfilling his ruling. But Argentina says it cannot pay the holdouts until the expiry at year-end of a clause prohibiting it from offering them better terms than the investors who took part in the 2005 and 2010 debt swaps.
If Argentina does not make the coupon payment by a July 30 deadline, this will trigger a new default, just 12 years after the last one.
Lead holdout creditors NML and Aurelius were not immediately available for comment when contacted by Reuters.
La Nacion said lawyers for NML are preparing a written request for the stay to be extended until the end of the year when the so-called RUFO clause expires in exchange for a commitment from Argentina to negotiate with the holdouts from 2015.
NML wants Argentina to deposit some money into an escrow account to guarantee its commitment, the paper wrote.
La Nacion cited official sources as speculating that NML could present its request to Griesa on Thursday. (Reporting by Sarah Marsh and Alejandro Lifschitz, additional reporting by Daniel Bases in New York; Editing by Chizu Nomiyama)
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