Italian bondholders to sue Argentina at US court

An Italian bondholder group has launched a class-action suit against Argentina in the United States, days before Buenos Aires…

An Italian bondholder group has launched a class-action suit against Argentina in the United States, days before Buenos Aires is due to start a controversial swap offer for $102.6 billion in defaulted debt.

Creditors around the world are individually suing Argentina for their money, but a class-action suit filed in the United States last year was rejected.

Italian consumer association ADUC said on Wednesday it had launched a class-action suit related to Argentina's 2008 bond. It is being represented by law firm Murray, Frank & Sailer.

ADUC said it planned class actions for all the other Argentine bonds issued under US jurisdiction. If accepted, the lawsuit will cover all holders of such bonds.

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Many creditors are furious about the swap, which is due to start on January 14th and will give them back only about a third of what they invested.

German businessman Mr Horst Urban last year asked a US court to block Argentina from offering new bonds to members of his class action suit, but a judge denied the motion.