Argentina closer to defaulting on $1.3 billion debt after U.S. federal judge’s ruling

http://www.rawstory.com/rs/2014/06/26/argentina-closer-to-defaulting-on-1-3-billion-debt-after-u-s-federal-judges-ruling/



Argentina closer to defaulting on $1.3 billion debt after U.S. federal judge’s ruling
By Agence France-Presse
Thursday, June 26, 2014 19:30 EDT

New York (AFP) – Argentina moved a step closer to defaulting on its debt Thursday after a US federal judge refused to freeze an order for it to pay off hedge funds holding $1.3 billion in bonds.

The country said it deposited $832 million into US banks to pay principal and interest due Monday to creditors holding the country’s restructured debt.

But New York judge Thomas Griesa denied a stay requested by Buenos Aires on his order to pay, at the same time, hedge funds NML Capital and Aurelius Management, which refused to take part in the country’s 2005 and 2010 debt restructuring.

That left Argentina under order to pay both at the same time, by the June 30 deadline, and banks processing the payments forbidden to pay one without the other.