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Category Archives: Argentina

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Argentina Files Petition to the U.S. Supreme Court

Posted in Argentina, Foreign Sovereign Immunities Act, SCOTUS, Second Circuit, Sovereign Debt
On February 18, 2014, Argentina filed a petition asking the United States Supreme Court to review the Second Circuit’s decision affirming the District Court’s decision requiring Argentina to pay a group of holdout bondholders (called “vulture funds” by Argentina’s counsel) 100% of the monies owed to them.  As we discussed here, here, and here, the… Continue Reading

Supreme Court Will Hear Argentina’s Appeal of Discovery Orders

Posted in Argentina, Cross-Border Restructuring, SCOTUS, Sovereign Debt
On January 10, 2014, the Supreme Court agreed to hear Argentina’s appeal of the Second Circuit’s decision allowing “holdout” bondholders to subpoena banks for information about Argentina’s assets.  EM Ltd. v. Republic of Argentina, 695 F.3d 201 (2d Cir. 2012), cert. granted, Case No. 12-842, 2014 LEXIS 15 (Jan. 10, 2014).  In the lower courts… Continue Reading

Second Circuit Rejects Argentina’s Request for Reconsideration

Posted in Argentina, Cross-Border Restructuring, Second Circuit, Sovereign Debt
On November 18, 2013, the Second Circuit issued an order denying Argentina’s petition for rehearing of the court’s decision upholding an injunction that barred Argentina from paying holders of restructured debts while “holdout” creditors remain unpaid.  NML Capital, Ltd. v. Republic of Arg., Case No. 12-105, Docket No. 1035 (2d Cir. Nov. 18, 2013).  As… Continue Reading

Supreme Court Refuses to Hear Argentina’s Appeal

Posted in 28 USC section 1602 et seq., Argentina, Chapter 11, Foreign Sovereign Immunities Act, SCOTUS, Sovereign Debt
On October 7, 2013, the Supreme Court issued an order denying Argentina’s petition for a writ of certiorari on the interim decision of the Second Circuit that Argentina violated the contractual provision that all bondholders must be treated equally (discussed here and here). The Supreme Court’s decision comes on the heels of an October 3,… Continue Reading

UPDATED: Crying for Argentina: Hedge Funds Initiate Litigation To Collect On Sovereign Debt

Posted in 28 USC section 1602 et seq., Argentina, Foreign Sovereign Immunities Act, Second Circuit, Sovereign Debt
On August 23, 2013, the Second Circuit affirmed  the District Court’s decision, which held that Argentina must pay a group of holdout bondholders 100% of monies owed to them.  As we outlined in June, the long-running litigation dates to Argentina’s 2001 default on $100 billion of sovereign debt. Earlier this week, the U.S. Supreme Court… Continue Reading

Crying for Argentina: Hedge Funds Initiate Litigation To Collect On Sovereign Debt

Posted in 28 USC section 1602 et seq., Argentina, Second Circuit, Sovereign Debt
When sovereign states become insolvent or default on their debt, there are no statutory bankruptcy protections in place, such as the automatic stay, to orderly distribute assets and prevent litigation to collect on defaulted debt.  The alternative to statutory bankruptcy protection is frequently debt restructuring proposals that force debt holders to accept deeply discounted exchange… Continue Reading