Argentina seeking an out from debt showdown
One potential scenario is that Argentina would send its $3 billion to the Bank of New York, washing its hands of what happens to the money after it leaves Argentine soil. The judge could then order the bank to pay holdouts part of that $3 billion, effectively lowering the payments to others. Some analysts have said this would cause a technical default, effectively breaking Argentina's promises and possibly causing another financial crisis for the country.
The Bank of New York on Friday refused to play along. It filed a response to the judge saying that its only responsibility is to process payments to restructured debtholders, not the holdouts. If it does otherwise without clear rules provided by the judge, the bank said, it also could be sued, by both sides.
Holders of restructured bonds also objected Friday, led by Sean O'Shea, who argued for Gramercy Funds Management that their money was being ``held hostage'' by the judge's remedy.
Griesa said he would act quickly on Friday's motions and fine-tune his remedy in time for December's payment dates.
The restructured bondholders have hired attorney David Boies, the heavyweight lawyer who represented