Argentina won a reprieve on its debt late Wednesday when a US court lifted a deadline that could have pushed the country into default.
A federal appeals court in New York postponed undefinitely the effects of an earlier ruling that ordered Buenos Aires to pay 1.3 billion dollars in unpaid loans acquired by US hedge fund NML Capital Ltd just before Argentina defaulted on its debt in 2001.
The November 21 ruling by a New York district court had ordered the Bank of New York Mellon Corp, which handles Argentinian sovereign transactions, to withhold payments to other bondholders of around 3 billion dollars that are due December 15 if Argentina did not pay NML Capital by then.
The 2nd Circuit Court of Appeals did not release its reason for staying the order. An oral hearing was scheduled for February 27.
NML Capital is one of a small number of investors who refused a swap on Argentine bonds in 2005 that valued the debt of those bonds at around 30 per cent of their original value.
Argentina has been repaying those since 2005.
Other holders of defaulted Argentine debt have been watching NML Capital's lawsuit, whose outcome could determine the chances of recovering their own loans totalling more than 11 billion dollars.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- Vybz Kartel Convicted of Murder
- U.S. Consumer Sentiment Falls in Early March
- SoCalGas Reaches Record Spend on Diversity Suppliers
- U.S. to Relinquish Gov't Control Over Internet
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Koch Brothers Step up Anti-Obamacare Campaign