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Argentina One-Sixth Bond Offer Seen as ‘Thumbing Nose’

Argentina, which defaulted on a record $95 billion in sovereign debt in 2001, proposed giving holders of $1.3 billion of the repudiated bonds about one-sixth of what a U.S. judge has said they’re entitled to receive--a move one analyst called “thumbing its nose at the court.”

The country’s filing of its proposed plan yesterday, one hour before a deadline set by the court weeks ago, paves the way for the U.S. Court of Appeals in New York to rule in a case in which a group of creditors, led by hedge fund Elliott Management Corp.’s NML Capital Ltd., seek to force the South American nation to pay after more than a decade of litigation.