Argentina Makes Final Bid to Reverse U.S. Court RulingsBob Van Voris
Argentina filed a final brief asking a U.S. appeals court to reverse rulings that would help Elliott Management Corp.’s NML Capital Fund among other creditors collect on sovereign debt the country repudiated more than a decade ago.
Argentina, which defaulted on a record $95 billion of bonds in 2001, responded to creditor arguments in its filing yesterday with the U.S. Court of Appeals in New York. The republic claims the rulings illegally interfere with its immunity as a sovereign nation and improperly exert authority over third parties including banks.
The same appeals court ruled on Oct. 26 that Argentina can’t treat holders of its restructured debt more favorably than the so-called holdout creditors, who declined to participate in two rounds of debt restructuring.
The appeals court also sent part of the case back to U.S. District Judge Thomas Griesa, who then ordered Argentina to put into escrow $1.3 billion, the amount claimed by the defaulted bondholders in the case, when it makes scheduled payments on the restructured bonds.
Griesa also barred third parties, including banks, from helping Argentina evade his orders. Those issues are set to be argued before the appeals court on Feb. 27.
The case is NML Capital Ltd. v. Republic of Argentina, 12-00105, U.S. Court of Appeals for the Second Circuit (Manhattan).