Argentina won a U.S. appeals court ruling preventing a judge frmo freezing billions of dollars worth of assets held at Citigroup Inc’s Argentina unit, in a lawsuit brought forth by bondholders that have judgements against the republic.
A lower court ruling previously stated that the judge lacked power to freeze assets held in a custodial account at Citibank’s Argentina unit on behalf of the republic’s Administracion Nacional de Seguridad Social, or Anses. The judge said that the accounts may hold securities worth of billions of dollar.
U.S. District Judge Thomas Griesa issued a temporary order postponing his decision on the rulling, and freezing the assets, until it became clear whether there would be an appeal of his ruling.
Aurelius Capital Partners was among the invsetors seeking to freeze the assets..
“Most obviously, the district court did not find, nor will the record support, a likelihood that Aurelius will succeed on the merits of a claim that the custodial accounts at issue are being used for commercial activity in the United States,” wrote the appeals court in a one-page order.
