Photo: Casa Rosada
Reuters’ Alison Frankel reports that District Judge Thomas Griesa basically threatened Argentina in federal court in Manhattan on Friday if the country does not make interest payments it owes to bondholders next month.Here’s the transcript [via Reuters]:
“If — and I emphasise if — there is any thought on the part of the Republic to defy and evade the current ruling, then that thought should be seriously reconsidered and set aside,” Griesa said. “If it turns out as a fact that the Republic has some intention of evading the Court of Appeals ruling, our courts are not helpless. I think the Republic should realise that the record of defiance of judgments already entered is … beginning to be viewed very negatively, and that is certainly evidenced in the Court of Appeals discussion. And steps can be taken, which I will not try to discuss now, but steps can be taken to sanction any misconduct by the Republic of the kind I am talking about, which will not simply amount to allowing the Republic to disobey judgments and rulings. There will be means of dealing with that.”
One of the bondholders Argentina owes is hedge fund manager Paul Singer’s Elliott Management’s NML Capital.
Singer and Argentina have been in a long legal battle over $1.6 billion the country owes NML Capital on bonds that it defaulted on a decade ago.
Last month, Singer had Argentine naval ship, the ARA Libertad, seized while it was docked in Ghana as collateral.
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