NY judge: Citibank dilemma poses no great threat

Staff Writer
Columbus CEO

NEW YORK (AP) — A New York judge says he doesn't think an effort by Argentina to pay some bondholders through a Citibank branch in the South American country will lead to a widespread effort to violate his orders.

U.S. District Judge Thomas Griesa commented Wednesday at a Manhattan hearing. Lawyers for U.S. hedge funds who hold $1.5 billion in Argentine bonds had asked the judge to let them view correspondence and other records between Citibank and Argentina. One of the lawyers claimed Argentina is hoping to force Citibank to pay some bondholders by Sept. 30 so it can then go after other banks.

But the judge said he did not see such a threat. He reserved decision on the request for the documents. Argentina defaulted in July on payments owed to many bondholders.