Argentina will appeal ruling that forces it to pay $ 5.4 billion – El Nuevo Herald

The Argentine government will appeal the decision by a US judge on Friday issued a ruling that forces the South American country to pay an extra $ 5,400 million in the case of hedge funds.

The New York judge Thomas Griesa issued a ruling Friday that requires the government to pay $ 5.400 million to more than 500 creditors (who are known as “me too”) who asked was given them same treatment as hedge funds already won a lawsuit relating to the payment of a debt of hedge funds.

In the new ruling Griesa argues that creditors “me too” hold similar to those of hedge funds bonds and therefore should be treated equally. These bonds contain a clause, he said, that requires payment to be made while disbursements to creditors who accepted the restructuring of 2005 and 2010.

Griesa claims that Argentina violated the clause called ” pari passu “in rejecting the so-called” holdouts “restructured to meet bondholders, who held 92% of the unpaid titles.

The Ministry of Economy and Argentine Public Finance said in a statement it would appeal the new ruling which he described as “unusual” and said the plaintiffs in this new case are the same as “vulture funds” have already obtained a similar sentence in the past.

“Now dress up in new cases as` me too ‘, in order to generate more pressure and attempt to multiply the stratospheric gains offered by Judge Griesa “he said in a statement.

In 2012, Griesa ordered Argentina to pay about $ 1.500 million to investors as compensation for the default on its massive debt in 2001. The South American country has refused to accept the verdict, so several ratings agencies stated in the technical or partial cessation of payments.

For the Argentine Ministry of Economy “demonstrated that the vulture funds claim greatly exceeds the $ 1.600 million and therefore not hesitate to use all means necessary to continue trying to extort the Republic. For this he used his enormous financial and lobbying capacity, and supported the endorsement of the justice of the United States, acting at the expense of the vast majority of creditors of our country, “he said in a statement.

The Argentinean government had refused to resume negotiations Monday with US hedge funds who sued the South American country before a court in New York for its debt securities fell in default since 2001.