A New York Federal Judge has lifted a freeze on $7 billion worth of Argentine bonds, but has agreed to hold off implementing the ruling while creditors file an appeal.
The bonds are part of a deal Argentina worked out with its creditors as part of the nation's debt restructuring plan. During an economic crisis in 2001, the nation stopped payment on about $82 billion in debt.
Under the deal worked out with 76 percent of its creditors, Argentina would swap new bonds worth about 30 cents on the dollar to pay down its debt. The swap was scheduled to take place Friday.
But creditors who did not agree to the deal challenged it, resulting in the assets being frozen.
Judge Thomas Griesa said his ruling will allow both the deal to continue and creditors time to appeal.Some information for this report provided by AP, Bloomberg and Reuters.