Argentina's fight on defaulted debt takes new step
The amount at stake in the current litigation is $1.3 billion, but all of the old bonds held by investors who didn’t accept the debt restructuring total about $11.2 billion. If the U.S. courts eventually uphold Griesa’s ruling, all those investors could demand immediate payment.
Ramiro Castineira, an analyst for the consulting firm Econometrica, sees a possibility that the courts may rule in favor of the ‘‘vulture funds’’ but also allow a more favorable schedule of payments for Argentina.
‘‘There’s a lot of uncertainty,’’ Castineira said. ‘‘Whatever the court rules, both sides are going to appeal and try to take it to the Supreme Court, which must decide if it takes the case or not.’’
Associated Press writers Michael Warren in Buenos Aires and Luis Andres Henao in Santiago, Chile, contributed to this report.