Dart Fund Denied Supreme Court Review on Argentine Bonds

Two funds, one controlled by billionaire Kenneth Dart, lost a U.S. Supreme Court bid to collect at least $2 billion owed by the government of Argentina.

The justices today refused to hear an appeal by Dart’s EM Ltd. and NML Capital Ltd., an affiliate of the New York-based hedge fund Elliott Associates LP, in a multi-pronged dispute stemming from Argentina’s 2001 default on $95 billion of bonds.

The funds, which refused to exchange their securities in a 2005 Argentine debt swap, have been seeking to enforce $2 billion in judgments they have won in U.S. court cases.

EM and NML were trying to seize $100 million in Argentine central bank assets being held at the Federal Reserve Bank in New York. A federal appeals court said that money is shielded under the U.S. Foreign Sovereign Immunities Act.

Dart is president of Mason, Michigan-based Dart Container Corp., the world’s largest maker of foam cups. He gave up his U.S. citizenship in the 1990s to avoid taxes and moved to the Cayman Islands.

U.S. Solicitor General Donald Verrilli, asked by the court for the Obama administration’s views, urged the justices to deny review. The appeals court decision is correct and doesn’t conflict with any other appellate ruling, he wrote.

Justice Sonia Sotomayor didn’t take part in today’s action. She was involved in the litigation over Argentina’s bonds as an appeals court judge.

The case is EM Ltd. v. Republic of Argentina, 11-604.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE