Manhattan federal judge Thomas Griesa — arguably the most hated man in Argentina right now — is adding to his list of detractors.
Griesa’s unorthodox order in the debt dispute between Argentina and bondholders led by billionaire Paul Singer blocked the country from paying other bondholders and made Griesa the object of scorn in the South American country.
But Argentina’s supporters — who have their own #Griesafault Twitter hashtag — aren’t the only ones upset with the judge.
On Friday, about half the bondholders who didn’t get paid by Argentina in June appealed Griesa’s order. Those investors, mostly hedge funds that own bonds denominated in euros, argue they are not subject to the US ruling.
They join Citibank, which had already taken another Griesa order to a higher court.
The appeal by Citi, a custodian for other bondholders, was fast-tracked by an appellate judge Thursday.
Griesa dragged those parties into the fray when he came up with a novel approach that sought to force Argentina to pay off old bonds by also putting pressure on banks.
Griesa ordered that Argentina could not pay creditors who had agreed to swap their bonds for those of lesser value until it fully paid, including interest, Singer and other hedge funds that rejected the restructuring.
As a result, Bank of New York Mellon, a trustee for the exchange bondholders, was prevented by Griesa’s ruling from doling out the $539 million Argentina transferred to the bank in June. Griesa told BoNY earlier this month to hold onto the money.
The euro bondholders, who believe a US judge has no authority over them, are appealing.
Meanwhile, both Citi and Argentina are contesting another Griesa order, which said Citi must stop paying some US dollar-denominated bonds by Sept. 30. after allowing it to make the June 30 payment.
Griesa’s orders have turned him into a villain in Argentina, where posters show the 84-year-old judge’s head on a vulture. Some legal experts say he’s brought it on himself, by threatening Argentina with contempt for making statements he doesn’t like.
“The practical effect of that threat is zero,” said sovereign debt expert Anna Gelpern.