A Manhattan judge’s tirade against Argentina on Friday turned into a rebuke of a Paul Singer-financed lobbying group.
Federal court Judge Thomas Griesa said the ads run by the lobbying group, Task Force Argentina — financed by Singer to help fight his decade-long legal and political battle to win the right to collect on defaulted Argentina debt — were “wrong” to attack the country’s New York lawyers.
One ad claims that one of the lawyers, Jonathan Blackman, of Cleary Gottlieb, personally called Argentina President Cristina Kirchner to suggest the country default — while a second displays a drawing of the lawyer’s head on a vulture.
“It is reprehensible and outrageous,” Blackman told Griesa during a hearing Friday.
The news stunned Griesa, leading to a long silence before he finally said the actions by the group were “wrong.”
“I deeply regret any attacks or disparagement upon you,” he told Blackman.
Griesa called the hearing after seeing two-page “legal notices” in US newspapers, placed by Argentina, saying it had paid its bondholders. The ad referred to the $539 million Argentina wired in late June to make a payment to the vast majority of its bondholders who accepted a debt swap years ago.
But the court would not allow the payment to be made unless Argentina also pays Singer and other creditors the $1.65 billion they demand on defaulted debt they own. The payment to Singer wasn’t made, so Argentina defaulted on $15 billion in debt.
“False and misleading statements by Argentina must cease,” said Griesa in an hour-long monologue. The 84-year-old judge said if the false statements don’t stop, he might consider holding the country in contempt.