NEW YORK -- The US Federal Second Circuit Court of Appeal has dismissed Argentina’s appeal of Judge Thomas Griesa’s contempt order on the Latin nation.
Griesa held Argentina in contempt of court in September 2014 after the government violated his previous orders by unilaterally changing the trustee for exchange bonds from Bank of New York to local entity Nacion Fideicomisos, in an attempt to avoid his order freezing payments until Argentina paid its previous debts.
In October, Judge Griesa said that Argentina must reverse this action before he would lift the contempt order. They have not done so and indeed are now suing Citibank.
The appeal was considered by a three-judge panel. One judge recused himself, and the remaining judges sided with holdout creditors, who had argued that the appeals court lacked jurisdiction as a final order had not been issued by the district court.
Griesa has not yet sanctioned Argentina for being in contempt, thus leaving the final order open.
Holdout creditors have argued for Argentina to be fined $50,000 per day until it complies with Griesa’s orders, but he has not issued a ruling.
NML v Argentina - Court of Appeals - Rejection of Argentina Appeal of Contempt - 7 April 2015 by Latin American Herald Tribune