Argentina in contempt in debt litigation- US judge

Sun May 31, 2009 8:08pm BST
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NEW YORK, May 31 (Reuters) - The government of Argentina and the country's social security agency are in contempt of court for their failure to provide documents in litigation by holders of its defaulted bonds, a U.S. judge has ruled.

U.S. District Judge Thomas Griesa granted a contempt of court motion last week by bondholder Aurelius Capital Partners hedge fund, according to a transcript of a hearing in Manhattan federal court obtained over the weekend.

Lawyers for Aurelius complained that they had not received documents the judge had ordered the agency, known as Anses, to provide about transactions it made through a private brokerage.

Griesa has previously rejected arguments that the agency, which took control of pension assets in the United States, was separate from the government.

He has frozen part of those assets held in the United States as bondholders sought to seize Argentine government assets overseas. The country has been locked out of international debt markets since its 2002 sovereign default and bondholders have fought in court to recover assets they have already won in judgments.

"Serious questions have been raised about whether Anses and/or the Republic moved assets out of the United States contrary to court orders," the judge said, according to the transcript.

He said he accepted that the bondholders would request information about any such transactions.

"The motion to hold the Republic in contempt is granted. It is the finding of the court, which I have already made and I will affirm, that the Republic has the power to see that Anses provides the necessary" information.

A lawyer for Argentina, Carmine Boccuzzi, could not be reached for comment, but according to the transcript he told the court that the economic ministry had asked Anses for the information ordered by the judge.  Continued...

 
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