The Bank of New York Mellon, worried of a lawsuit made by Argentinian bondholders and not open to defying a court order halting their payments, is looking to U.S. Judge Thomas Griesa for guidance on how to handle the money.
BNY Mellon acquired nearly $540 million recently in defiance of the judge’s order indicating the Argentine government to pay its bondholders, who have took part in the debt re-organization in 2005 and 2010 --- the same time it paid investors who won $1.35 billion in court as well as accumulated interest.
Argentina will have until the end of this month to make a deal with the holdouts. If it does fail, the country will likely end up on its second debt crisis in over a decade.
Aurelius Capital Management, a holdout investor firm, asked to file an order that pushes BNY Mellon bring back the money to Argentina.
The Argentinian government is saying the money now belongs to restructured bond holders.
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