Tuesday March 2, 2021
  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast
Versión Español
PanAm Post
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
PanAm Post
No Result
View All Result

Home » Argentina’s Euro Bondholders Dispute US Court Ruling

Argentina’s Euro Bondholders Dispute US Court Ruling

PanAm Post Staff by PanAm Post Staff
July 7, 2014

Tags: Bank of New York MellonEuroclearThomas Griesa
0
0
SHARES
0
VIEWS
FacebookTwitterTelegramWhatsapp

The European Bondholders of Restructured Argentina Debt have filed suit in Brussels against Belgium-based bond settlement agency Euroclear and Bank of New York Mellon Brussels after interest payments owed to them were blocked by a US federal judge and the money returned to Argentina.

Christopher Clark from Latham & Watkins presented a memorandum of law to demand clarification on why the interest payments are being blocked. According to Clark, the Euro bonds are governed by entities outside the jurisdiction of the US District Court.

RelatedArticles

Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes

Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes

January 29, 2021
Dollarization Advances in Venezuela with Debit Cards for Foreign Currency Accounts

Argentina Drags Chile in its Bipolar Madness Over Venezuela

January 28, 2021

“At no point in the Euro Bonds’ payment chain do funds comprise US dollars, enter the United States, or flow through US entities,” wrote Clark.

The standoff comes after dissatisfied bondholders, who disagreed to tender their bonds in exchange for new securities, demanded a Manhattan District Court judge issue an injunction blocking interest payments to all bondholders until the original amounts owed to them were settled. The district court agreed to their demands and ordered the payment of US$1.3 billion, but Argentina has refused to comply.

US Federal Judge Thomas Griesa recently excluded bonds issued in Argentina and through Citibank outside the United States from the injunctions, because payments to these bondholders are governed by foreign law and the foreign parties that process them could face exposure if they comply with the US injunction. European bondholders are now left wondering why banks in Europe are being blocked from making payments to them.

Moreover, Belgium enacted a law in 2004 that aimed to protect Euroclear’s freedom to distribute funds to debt holders. The law states that no cash settlement can be held under sequestration, or otherwise blocked, by third parties.

Argentina is now in a “technical default” which could, after July 30, become an “event of default,” making its debt immediately due and payable.

The holdout creditors led by New York-based Elliott Management Corp.’s NML Capital Ltd unit and Argentinean negotiators will meet today in an attempt to resolve the impasse. Argentina is still within the 30-day grace period to try and reach a resolution before the official default.

Source: Latin American Herald Tribune.

Tags: Bank of New York MellonEuroclearThomas Griesa
Previous Post

Correa Seeks “Super” Board to Rule Ecuador’s Banks

Next Post

Panama Jumps on Price-Control Bandwagon

PanAm Post Staff

PanAm Post Staff

Related Posts

Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes
Analysis

Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes

January 29, 2021
Dollarization Advances in Venezuela with Debit Cards for Foreign Currency Accounts
Argentina

Argentina Drags Chile in its Bipolar Madness Over Venezuela

January 28, 2021
Dollarization Advances in Venezuela with Debit Cards for Foreign Currency Accounts
Analysis

Dollarization Advances in Venezuela with Debit Cards for Foreign Currency Accounts

January 28, 2021
Mexico, the Dilemma of Voting for a Comedian or an “Alleged” Rapist
Mexico

Mexico, the Dilemma of Voting for a Comedian or an “Alleged” Rapist

January 27, 2021
Maduro’s “Miracle Drops” Against COVID-19 Pass Twitter’s Filter
News

Maduro’s “Miracle Drops” Against COVID-19 Pass Twitter’s Filter

January 26, 2021
Two Years of Guaidó: No Democracy in Venezuela, Corruption Multiplied
News

Venezuela: Where Corruption Is Covered up With More Corruption

January 25, 2021
Next Post
Peru and Honduras Drop Visa Requirements for Tourists

Panama Jumps on Price-Control Bandwagon

Discussion about this post

Subscribe free and never miss another breaking story

  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast

© 2020 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact

© 2020 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Privacy and Cookie Policy.