News Daily Spot: US judge in Argentina ordered to pay US $ 6,100 million to bondholders

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US judge in Argentina ordered to pay US $ 6,100 million to bondholders

Argentina can not afford not to all bondholders and refuse to pay 6,100 million owed to creditors who refused to redeem other documents on sale markedly after the South American country fell into arrears in 2001 by 100,000 million bonds, ordered on Friday a judge of the United States.

By Larry Neumeister / Associated Press

The written decision of Federal Judge Thomas Griesa means that Argentina owed about 8,000 million dollars to creditors who refused to exchange their bonds for other rated on a much smaller amount, which offer was accepted by approximately 93% of the holders of Argentina bonds in 2005 and 2010.

Griesa said Argentina must pay all bondholders who refused to redeem them if you decide to pay to those who did accept change. During the bond swap, Argentina invited creditors to change the above documents by other valued between 25% and 29% of the original value.

The judge in Manhattan said that Argentina has violated his promise to treat 6,100 million as distributed during the exchange bonds.

"The Republic has made clear his intention to challenge any monetary judgment by this Court, and the plaintiffs have no other means to enforce their rights," Griesa said.

A lawyer representing Argentina made no immediate comment on the matter.

But in court papers, lawyers for Argentina urged Griesa not add the 6,100 million dollars that the country owes money, arguing that doing so would raise the "shocking amount" of 8,000 billion the amount you because bondholders who refused to redeem and threaten the reserves of the Central Bank of the country.

"These reserves are vital to maintaining the healthy functioning of the economy of the Republic, and orders the Republic requested would cause an unacceptable degree of risk catastrophic", detailed the lawyers.

After the default of 2001, the US hedge funds, including NML Capital, Argentina pooled bonds but rejected the exchange offer, opting to file a lawsuit to the contracts they signed were respected.

In a statement Friday, NML's lawyer, Robert Cohen, said the ruling does not alter the obligations Griesa of Argentina, but confirms that the country should give equal treatment to all creditors.

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