Judge scolds Argentina, but no contempt order
Nation’s plan to evade legal orders, failing to make required payments to U.S. bondholders is illegal.
According to a federal judge in Manhattan, Argentina’s plans to evade his orders by failing to make required payments to U.S. bondholders is illegal and cannot be carried out, but he stopped short of finding the South American nation in contempt of court.
U.S. District Judge Thomas Griesa called the republic’s actions toward U.S. bondholders “lawless” at the New York City hearing.
However, he rejected requests by lawyers for U.S. hedge funds to make a contempt finding, saying he wanted everyone to concentrate on an eventual settlement.
Argentina attorney Jonathan Blackman has repeatedly told the judge that the country is left with few options because any deal it reaches with U.S. bondholders owed about $1.5 billion would obligate it to pay over $20 billion to other bondholders.
Judge Cohen said a finding of contempt would send a stern message to top Argentine officials as well as to any financial institutions that might want to help Argentina avoid its obligations to U.S. bondholders.
Source: Usatoday
