The judge in Argentina's long-running debt battle with hedge funds threatened a contempt-of-court order on Friday if the nation does not stop issuing false statements about having made required debt payments.
At a hearing, U.S. District Judge Thomas Griesa told lawyers at Cleary Gottlieb, which represents Argentina, that the country has made several false, misleading statements after he ordered the nation to stop doing so last week.
Argentina and holdout hedge funds that were awarded $1.33 billion plus interest by Griesa have been unable to come to a settlement.
The country, which defaulted on about $100 billion in debt in 2002, said in notices in U.S. newspapers that it has paid its debt, which Griesa said was not true. "There has been no payment," he said.