US vulture fund ruling pushes Argentina towards second bankruptcy
A US judge has blocked a $500m (£290m) payment by Argentina to creditors due on Monday, pushing South America's second largest economy closer to a second massive default in 13 years.
New York district judge Thomas Griesa said after a quickly convened court hearing that Argentina was in breach of his decision that US vulture funds, which have pressed for full repayment of their loans, were entitled to bypass a longstanding debt restructuring deal.
The ruling, which enforces an earlier decision in favour of vulture funds seeking a $1.6bn payout, means that $539m of Argentina's scheduled debt repayments were stuck in Bank of New York Mellon, which as trustee was due to disburse the payments under the previous debt deal.
A spokesman for the vulture funds called Argentina's attempt to pay rival creditors holding restructured bonds a "brazen step" that had forced them back to court. Robert Cohen, a lawyer for NML Capital, the lead hedge fund pursuing Argentina, had asked Griesa to hold the country in contempt of court.
http://www.theguardian.com/world/2014/jun/27/us-vulture-funds-argentina-bankruptcy
Earlier ruling here ;http://www.democraticunderground.com/10025118579