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District Judge Thomas Griesa on Thursday called Argentina's proposed debt restructuring plan "illegal" but stopped short of holding the country in contempt, saying that would not help resolve the dispute that led to the country's second default in a dozen years. Griesa said proposed legislation announced on Tuesday by President Cristina Fernandez would violate orders he imposed favoring creditors who refused to restructure bonds following the country's 2002 default on $100 billion in debt. Argentina missed a June interest payment after Griesa blocked payments owed to holders of debt issued under U.S. The proposal prompted lawyers for Elliott Management Corp's NML Capital Ltd and Aurelius Capital Management, the leading bondholders suing for payment after not participating in the country's restructurings, to seek a contempt finding.