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DJ Judge Pension Assets In Argentina Immune From US Attachment

Posted by giatructuyen.com on March 9, 2010

=DJ Judge: Pension Assets In Argentina Immune From US Attachment

Mon Mar 08 19:29:59 2010 EST 

   By Chad Bray

  NEW YORK (Dow Jones)--A federal judge has ruled that securities held by an
Argentine pension agency in custodial accounts with a branch of New York-based
Citigroup Inc. (C) in Argentina aren't subject to attachment under U.S. law.

  In an order dated Friday and made public Monday, U.S. District Judge Thomas
P. Griesa in Manhattan found that billions of dollars in securities held by
Argentina's state retirement agency Administracion Nacional de Seguridad
Social, or Anses, in custodial accounts with Citigroup's Citibank in Argentina
are "immune from attachment, restraint and execution."

  The judge also vacated a prior order he signed in February granting orders of
attachment on those securities. The prior order also was made public Monday.

  Under an order of attachment, assets in the U.S. could be used to satisfy
default judgments against a party in a lawsuit such as Argentina. Argentina
defaulted on billions of dollars in sovereign bonds in 2001 and is facing a
number of lawsuits in the U.S. from bondholders.

  The judge stayed execution of Friday's order to give the plaintiffs time to
consider an appeal and "to consider whether there can be a stay which would
allow normal business in the custodial accounts to be carried on."

  A lawyer for the Aurelius Capital, which brought the case, didn't immediately
respond to a request for comment late Monday.

  In October 2009, the U.S. Second Circuit Court of Appeals threw out a prior
order of attachment by Griesa in a separate case related to about $200 million
in assets held by Anses in the U.S.

  Last week, the U.S. Supreme Court declined to hear an appeal in that case,
and the frozen assets were moved to Argentina on Thursday.

  Griesa had ordered the attachment in December 2008, two days after Argentina
nationalized its private retirement system and transferred billions of pesos
from private pension funds to Anses.

  -By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com

  (END) Dow Jones Newswires

  03-08-10 1929ET

  Copyright (c) 2010 Dow Jones 

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