The American Bankers Association asked a court to overturn orders it claims improperly handcuff Bank of New York Mellon Corp. in litigation over Argentina’s defaulted debt.
In a filing yesterday, the ABA asked the US Court of Appeals in New York to reverse rulings by Judge Thomas Griesa, which the group claims would interfere with the bank’s role as indenture trustee for Argentina’s restructured debt. The court will hear arguments in the case on Feb. 27.
“Permitting injunctions against these trustees that preclude them fulfilling their pre-existing obligations whenever expedient to enforce a judgment against the debtor will have significantly adverse consequences for the financial system,” the ABA said. Argentina defaulted on $95 billion in 2001.