New York judge orders around-the-clock debt talks aimed at averting Argentina default

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NEW YORK, N.Y. – A federal judge in New York has ordered around-the-clock negotiations aimed at averting a second debt default by Argentina in 13 years.

Judge Thomas Griesa issued the order Tuesday.

The proceeding added to the drama surrounding a July 30 deadline for Argentina to pay some $1.5 billion owed U.S. bondholders.

The bondholders are U.S. hedge funds that rejected Argentina’s restructuring offer following its record $100 billion default in 2001.

Griesa has blocked U.S. banks from letting Argentina pay the vast majority of its bondholders who accepted lower-valued bonds unless it pays the U.S. hedge funds.

Argentina’s economy minister earlier this month participated in negotiations with a court-appointed mediator.

The plaintiffs in the court action are led by New York billionaire Paul Singer’s NML Capital Ltd.

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