A U.S. judge ordered Argentina and investors who did not participate in the country’s past debt restructurings to meet “continuously” with a court-appointed mediator until a settlement is reached, warning of the threat of a new default.

    U.S. District Judge Thomas Griesa in New York told Argentina and lawyers for investors who declined to restructure their bonds after the country defaulted on about US$100 billion in 2002 that time was running out to reach a deal and avert a fresh default.

    “That is about the worst thing I can envision. I don’t want that to happen,” the judge said.

    Jonathan Blackman, a lawyer for Argentina, Latin America’s No. 3 economy, said even with around-the-clock talks, it would be “unlikely, if not impossible, to result in a settlement.”

    “It simply can’t be done by the end of the month,” he said.

    Griesa ordered the parties to meet with Daniel Pollack, a New York lawyer appointed to oversee settlement talks, “continuously until a settlement is reached.”

    Pollack, who was appointed June 23 as a mediator, has been holding meetings with the parties, publicly acknowledging talking twice with Argentine officials.

    The Argentine economy ministry did not respond to requests for comments after the hearing.

    The president of Argentina said in a statement that “Judge Griesa ... resolved absolutely nothing on any of the issues that had been brought before him.” (SD-Agencies)