Reuters
Wednesday, February 19, 2014
By Felix Salmon
Argentina,
as everybody knew it would, has gone to the Supreme Court to appeal the
bad (and ignoble) ruling against the country by New York’s Second
Circuit. The most likely final outcome, still, is that Argentina will
default, for the reasons (but not with the timing) I gave last year.
But, with this petition, Argentina now has three possible outs.
Call
them sovereign immunity, pari passu, and the bondholders’ ransom. None
of them is particularly likely to happen — but add them all together,
and there’s still a glimmer of hope for Argentina.
1. Sovereign Immunity
The
first one is, in a sense, the obvious one. Argentina has appealed the
lower court ruling to the Supreme Court, and it is possible that the
Supreme Court will accept the case, hear it, and find in favor of
Argentina. (If that happens, the decision would come down some time
between October 2014 and June 2015.)
The Business Times
Wednesday, February 19, 2014
[WASHINGTON]
Argentina filed an appeal to the US Supreme Court on Tuesday seeking to
reverse lower court decisions ordering the country to pay US$1.33
billion to hedge fund creditors in a case Argentine officials warn could
force it to default on its sovereign debt.
The
appeal followed a Nov 18 decision by the 2nd US Circuit Court of
Appeals in New York denying Argentina's petition for a rehearing in a
decade-long legal battle with bondholders who refused to accept the
country's two debt-restructuring offers after the country defaulted on
$100 billion in 2002.
The
litigation has heightened investor concerns about a potential debt
crisis in South America's second-largest economy, which is reeling from a
17 per cent currency devaluation last month that sent shudders through
global markets.
BN Americas
Wednesday, February 19, 2014
By Natal Levy
Argentina
has filed its final petition to the US supreme court for a hearing
(certiorari) in its long running battle with bond holdouts led by NML
Capital, a unit of Elliott Management, a battle which has persisted
since the country defaulted on its bonds in 2002.
The
petition filed on Tuesday evening, and most likely the final legal
recourse available to the country, took care to once again highlight the
limited resources of the state and the potential for an economic crisis
should the court refuse to reconsider the August 23, 2013 ruling by the
second circuit court of appeal.
That
ruling set a ratable payment formula, enjoining other market
participants, including BNY Mellon, to the decision requiring Argentina
to pay over US$1.3bn. Furthermore, the second circuit court set forward
restrictions to ensure the holdouts are treated in the same way as other
creditors (the pari passu clause) and called for payment of over
US$1.3bn including overdue interest to be made.
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