Argentina injunctions to be lifted after promising to pay $6.2 billion

Argentine bondholders requested the court to wait a little longer before lifting the injunctions over defaulted bonds by the Argentinian government. However, a US judge rejected the request and ruled to follow the agreed timeframe.

Thomas Griesa, a US District Judge in Manhattan, says he understands the arguments given by the creditors to wait for another month, but things have changed significantly and to delay the injunction would be detrimental to the public interest.

The original ruling of two weeks will remain as this would allow any arguments that would arise thereafter. The condition of Argentina between its creditors involved repealing its two laws regarding debts and paying its creditors $6.2 billion. These creditors consist of Elliot Management NML Capital Ltd and Aurelius Capital Management who were part of the recipients of the payment, as per Reuters.

Despite the agreement, NML creditors urged Griesa to postpone the injunction and wait for 30 days. They said the remaining plaintiffs which holds 15 percent of the claims has not been given a chance to settle their case.

According to New York Times, attorney Jessica Sleater represents a 90-year old client who bought Argentine bonds during the 90's for patriotic reasons and still has not been paid until now. Her client who is partly paralyzed plans to use the money to pay the expenses for his disability.

Griesa, on the other hand, said  there is a pressing need for finality and certainty for those settlements to succeed. Any delay will cause the Argentinian government its capability to pay its creditors. As reported by ABC News, Argentina has refused to pay but everything changed right after Mauricio Macri took office last December 10.

Argentina requested to lift the injunction after offering $6.5 billion to settle lawsuits by various bondholders which reached up to $100 million. The issued injunction has prevented Argentina to restructure its debt until it will be able to pay its creditors.

Tags

Argentina, Argetina's bond, Argentina's bondholders, Argentina's credit, Elliot Management NML Capital Ltd, Aurelius Capital Management, Thomas Griesa

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