A U.S. judge overseeing a high-profile suit which involves the defaulted Argentine debt has given a green light for the South American country to do a single-payment this week on bonds dictated by the Argentina’s law.
Judge Griesa halted the $539 million transfer of interest payments that was supposed to be deposited last month with the trustee for its NY and English law bonds due to Argentina ignoring his demands on paying the hedge funds.
Just recently, Griesa gave payment authorizations on re-organized bonds dictated by the Argentine law since the securities couldn’t be separated from bonds the country offered to Repsol SA, a Spanish oil firm, early this year to make up for its local subsidiary.
Now, Citibank Argentina can move interest payments as a result on Respol bonds and Argentine law restructured bonds to investors.
The South American country and its creditors have until this Wednesday to come up with a deal to curb what may likely be the country’s second default since 13 years ago.