U.S. Judge Delays Decision on Paying Some Holders of Argentine Bonds

By Nicole Hong 

A U.S. District Judge said in a hearing Tuesday that he will decide at a later time whether holders of Argentina's restructured bonds governed by Argentine, Japanese and U.K. law can receive their interest payments.

Argentina on June 26 deposited more than $800 million to make interest payments due June 30 on its restructured bonds. The money was deposited with Bank of New York Mellon Corp., Citigroup Inc. and J.P. Morgan Chase & Co.

Judge Thomas Griesa had earlier ruled that Argentina cannot pay restructured bondholders until it compensate a group of creditors holding out for full payment on bonds the country's defaulted on in 2001.

Argentina will enter into technical default on its restructured bonds on July 30 unless it reaches an agreement with the holdouts.

After Argentina's default in 2001, the country had two debt restructurings in 2005 and 2010, where it issued debt governed by U.S., U.K., Argentine and Japanese law.

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