Boston, MA 09/19/2014 (wallstreetpr) – The Argentine bond payment lawsuit of Citigroup Inc (NYSE:C) has reached out to the U.S. appeals court now. Yesterday, the bank put forward its arguments regarding the serious forthcoming hazard that it might face in case the interest payments are not processed. The bank is unable to make these payments because the lower court in the U.S. has given an injunction for not doing so.
The Citigroup Inc (NYSE:C) said that in case it fails to process further the Argentina interest payment levied on the $8.4 billion in bonds, it would land into serious trouble. The bonds were issued by the country under its local laws.
Panel of Judges weighing pros and cons of the appeal
The appeal of bank filed is filed in the U.S. Circuit Court of Appeals situated in The New York City. The 3-member panel of judges is keeping all sides of this case into notion; in regard to the appeal filed by the bank to turn round the ban imposed by the lower court.
The ruling of lower court forbids Citigroup Inc (NYSE:C) to make payments to its creditors, who were the participants of previous two debt exchanges. Interestingly, these debt exchanges were a result of the default. The lower court gave its verdict that the bank had to make a payment to the holdout creditors first, before paying the group of aforesaid creditors.
Citigroup Lawyer Positive about the Money Transfers
Karen Wagner, the lawyer of the bank, in the meanwhile, remains positive regarding its money transfers. In this regard, she said that the bank will most certainly get another slot of money by the month end from Argentina.
She added that in case the appellate court does not reverse the injunction, the bank will follow the orders.
Nevertheless, the panel of judges is not all ears to the Citigroup’s arguments. One of the judges, Barrington Parker remained cynical of its arguments and opined how Citigroup Inc (NYSE:C) was seriously arguing whether or not the law bonds of Argentina were included in the injunction.