But yesterday, in a four line decision, the high court chose to reject the appeal, which leaves the lower court decision in force. The decision was signed by all the judges, with the exception of Justice Sonia Sotomayor, according to what LA NACION confirmed from court sources.

La Nacion

Another attachment against the country in the U.S.

 

Tuesday, October 02, 2012

 

By Silvia Pisani

 

WASHINGTON.- It’s a small amount.  But the meaning of the step taken yesterday by the U.S. Supreme Court is that it allows the so-called “vulture funds” to collect money from Argentina.

 

It’s the second time that it’s done so over the course of the year, and the move is beginning to be attentively watched both in the government as well as among those who follow the myriad of court cases that Argentina still has pending in U.S. courts. 

 

At the close of this edition, however, an Argentine government source told LA NACION that the issue “does not represent” a serious concern in the face of the hard judicial battle it’s having with creditors of bonds in default.

 

"This judicial decision has no greater value as a precedent than other cases, it just confirmed an attachment over a bank account of the National Agency for the Promotion of Science and Technology,” said Ambassador Jorge Arguello.

 

The affected amount is US$3.2 million that the ANPCYT had deposited in an account of Banco Nacion in New York.

 

The account was detected by EM Ltd – of millionaire Kenneth Dart – and NML Capital, owned by Elliott Management, which asked for an attachment from Judge Thomas Griesa of New York, in whose courtroom various cases against Argentina are concentrated.

 

Three years ago, in September 2009, the New York court confirmed the decision, but in its desperate attempt to block it, Argentina appealed to the highest court, the United States Supreme Court.

 

Pre-emption drops

 

But yesterday, in a four line decision, the high court chose to reject the appeal, which leaves the lower court decision in force. The decision was signed by all the judges, with the exception of Justice Sonia Sotomayor, according to what LA NACION confirmed from court sources.

 

Official sources admit that the funds in question “have a long practice” in lawsuits over sovereign debt in default and that they were attached in an “aggressive judicial campaign” to collect unpaid assets from our country for more than US$2 billion.

 

While in this case the amount released is much less – only three million dollars – the meaning is that it is the second victory of this kind that they have obtained over the course of the year.  In July, they got access to US$23 million deposited in New York and, in part, corresponded to Banco Hipotecario, but were controlled by the private IRSA group.

 

The funds, whose attachment is now enabled, belong to the technology promotion agency which is under Minister Lino Barañao.

 

However, government sources said that the “nature” of those funds is oriented towards “commercial activities” and that they don’t necessarily represent national state assets.  “The funds deposited there were used for purchases that constitute a ‘commercial activity’ under U.S. law, and a private entity could have made the same kind of operations,” Arguello explained.

 

"This reasoning does not translate into other assets abroad, of Argentine state ownership, which are of a ‘sovereign nature’, and for that the vast number of attachments have been rejected where they’ve attempted to get assets from our country,” he added. 

 

The fear is that U.S. courts are setting a precedent that allows the attachment of Argentine assets abroad.  Sources consulted assured that this is not the case with this new ruling.  “It’s not anything pleasant, but it doesn’t fill us with fear,” they said. 

 

In the last three years, the “vulture funds” have increased their pressure in the American courts.  The tension with the government came starting with their refusal to enter the second debt swap offer held in 2010.