Judge holds Argentina in contempt over bond orders

NEW YORK (AP) — A judge, calling civil contempt a rarity, ruled that Argentina was in contempt of court on Monday for its open defiance of his orders requiring that U.S. hedge funds holding Argentine bonds be paid the roughly $1.5 billion they are owed if the majority of the South American nation’s bondholders are paid interest on their bonds.

U.S. District Judge Thomas P. Griesa made the announcement after a lawyer for U.S. hedge funds led by billionaire hedge fund investor Paul Singer’s NML Capital Ltd. argued that Argentina has openly defied Griesa’s court orders for more than a year. The judge reserved decision on sanctions pending further proceedings.