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Holdout creditors urge U.S. court to order Argentina to pay up

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(Globalpost/GlobalPost)

NEW YORK, Jan 25 (Reuters) - Investors who refused to participate in two sovereign debt restructurings by Argentina are urging a U.S. court to force the country to pay them, in a case that could have far-reaching implications on the ability of emerging market countries to borrow money.

In written arguments submitted to the 2nd U.S. Circuit Court of Appeals in New York, some "holdout" creditors said the South American country must pay them if it also intends to make scheduled payments to holders of its restructured bonds.

Argentina is seeking to have the appeals court overturn a finding in favor of the holdouts, who are led by NML Capital Ltd, part of a firm run by billionaire hedge fund manager Paul Singer, and the Aurelius Capital Management funds.

In Friday's court filing, Aurelius urged that the injunction ordering payments be upheld, saying it is "hardly an injustice" that Argentina pay debts it has owed for a decade.

The appeals court has set a new hearing in the case for Feb. 27.

The case is NML Capital Ltd et al v. Argentina, 2nd U.S. Circuit Court of Appeals, No. 12-105.

http://www.globalpost.com/dispatch/news/thomson-reuters/130125/holdout-creditors-urge-us-court-order-argentina-pay