New York judge won’t declare Argentina in contempt over debt
US DISTRICT Judge Thomas Griesa yesterday declined to find Argentina in contempt of court for its proposal to bring defaulted sovereign debt under local law.
Griesa said a proposal by Argen – tine President Cristina Fernandez on Tuesday was illegal, but that a contempt order now would not help bring about a settle ment in the case between the Latin American state and holdout creditors.
Holdout investors NML Capital Ltd, an affiliate of Elliott Management Corp and Aurelius Capital Management asked Griesa to issue a contempt order, in the latest twist of its longstanding battle to collect on its court award of $1.33bn (£800m) plus interest on the debt.
They said the proposal, which is being brought before its congress, would violate Griesa’s anti-evasion rulings that payments not be shifted outside of the US court’s jurisdiction.