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Argentina hopes to reverse NY debt ruling

November 27, 2012 • Business


Argentina’s President Cristina Fernandez delivers a speech during a ceremony to commemorate the Sovereignty Day in San Pedro, Argentina, Tuesday, Nov. 20, 2012. Fernandez faced on Tuesday a nationwide strike led by union bosses who once were her most steadfast supporters. (AP Photo/Raul Ferrari,Telam)

BUENOS AIRES, Argentina (AP) — Argentina is refusing to budge in its billion-dollar debt showdown in New York federal court, preparing an appeal Monday that it hopes will stave off another devastating default.

Judge Thomas Griesa left Argentina without any wiggle room, ordering the government of President Cristina Fernandez to pay $1.3 billion into an escrow account for the so-called “vulture funds” by Dec. 15, even as it pursues its final appeals.

If Argentina pays the plaintiffs, then lawyers representing other holders of defaulted debt, totaling more than $11 billion, are expected to demand immediate payment as well.

If it refuses, the judge said the Bank of New York Mellon must stop payment on the quotas Argentina has religiously honored to a much bigger group of bondholders who agreed to provide the country with debt relief in 2005 and 2010. That group together holds more than $20 billion in restructured debt, and some of them announced they too would appeal.

The ruling in favor of NML Capital Ltd., a fund run by billionaire Paul Singer, was issued just before the long Thanksgiving holiday weekend, and the consequences for Argentina were Login to read more

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