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Judge calls hearing on alleged Argentina contempt

Buenos Aires: Plaza de Mayo
David Almeida | Flickr
Buenos Aires: Plaza de Mayo

The U.S. judge overseeing the long-running litigation over Argentina bonds has scheduled a hearing for 3 p.m. EDT (1900 GMT) in New York, after Argentine officials announced plans to skirt his court rulings that pushed the country into default.

NML Capital Ltd, one of several holdout creditors who U.S. District Judge Thomas Griesa has said must be paid in full before Argentina can resume payments to other bondholders, had asked Griesa on Wednesday night to schedule an "emergency" hearing to consider whether to hold Argentina in contempt.

Read MoreCiti says Argentine bank license at risk

Separately, the International Swaps and Derivatives Association voted on Thursday to include two Japanese-law restructured bonds in the list of deliverable securities for an upcoming auction to settle Argentina's credit default swaps.

The challenge to the inclusion of the two notes had caused ISDA to postpone the date of the auction until afterSeptember 2.

Read MoreArgentina sues US in The Hague

Argentina defaulted in July after Griesa blocked a $539 million coupon payment to bondholders who accepted restructurings in 2005 and 2009, saying it violated his order.

—By Reuters

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