Judge Won't Exempt Citi From Argentine Debt Ruling

May 28 2013 | 12:36pm ET

A federal judge has told Citigroup that it will have to wait to see how his ruling that Argentina must pay hedge fund holdouts from its 2001 default will affect it.

U.S. District Judge Thomas Griesa refused Citi's request for a declaration as to whether it is affected by his order—currently stayed by a federal appeals court—barring payments to bondholders who accepted Argentina's exchanges in 2005 and 2010 unless the holdouts were paid, as well. Griesa said he could not rule until the Second Circuit Court of Appeals has made its decision on his earlier decision.

"What further ruling or action is required from the district court will obviously depend on the holding from the court of appeals," Griesa wrote. "No more can be said at this time."

Argentina appealed Griesa's November order to the Second Circuit, which heard arguments in February. That court could issue its decision at any time.

Last week, Citi sought an assurance from Griesa that it was not affected by his order, arguing that its Argentine unit faces "grave regulatory, civil and possible criminal risk for obeying a court order not recognized as valid in Argentina."

Argentina has vowed to never pay the holdouts, led by Elliott Associates.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...