U.S. appeals court won't send Argentina case to NY state court
NEW YORK |
Jan 10 (Reuters) - A U.S. appeals court on Thursday declined to ask New York state's top court to rule on the interpretation of a contract provision at the heart of litigation over Argentina's defaulted bonds.
Bondholders who participated in restructurings of Argentina's debtfollowing its 2001 default had asked that the case be sent to the New York Court of Appeals to have it issue an opinion on the meaning of a clause requiring the equal treatment of bondholders.
But the 2nd U.S. Circuit Court of Appeals in New York in a brief order denied the request. It did not give a reason.
Sean O'Shea, a lawyer for the exchange bondholders, in a statement said Thursday's ruling didn't affect his clients' "core arguments" in a pending appeal of an order by U.S. District Judge Thomas Griesa in November thatArgentina pay $1.33 billion into escrow for the holdouts.
The 2nd Circuit was expected to decide later this year whether Argentina must pay $1.33 billion to bondholders who did not participate in two restructurings of the country's debt in 2005 and 2010 following its $100 billion default 12 years ago.
Around 92 percent of the bonds were restructured, with investors getting between 25 cents and 29 cents on the dollar.
But holdout bondholders, including Elliot Management Corp affiliate NML Capital Ltd and the Aurelius Capital Management funds, went to court seeking to paid the full amount. Argentina has called these investors "vultures" and has fought against payment.
In October, a three-judge panel of the 2nd Circuit ruled that Argentina had violated a contract provision requiring it to treat creditors equally by paying the exchange bondholders and not the holdouts.
A group of exchange boldholders including Gramercy Financial Group LLC last month asked the 2nd Circuit to send the case to New York's highest court, the New York Court of Appeals, in order to consider the meaning of the so-called "pari passu," or equal treatment, clause, which is interpreted under New York state law.
Federal appeals courts sometimes ask the top courts in states to address questions arising out of state rather than federal law.
Sean O'Shea, a lawyer for the exchange bondholders, in a statement said Thursday's ruling didn't affect his clients' "core arguments" in a pending appeal of an order by U.S. District Judge Thomas Griesa in November that Argentina pay $1.33 billion into escrow for the holdouts.
Oral arguments at the 2nd Circuit on that appeal is scheduled for Feb. 27.
Spokesmen for NML and Aurelius declined comment.
The case is NML Capital Ltd et al v. Argentina, 2nd U.S. Circuit Court of Appeals, No. 12-105. (Reporting By Nate Raymond in New York; Editing by M.D. Golan)
Keine Kommentare:
Kommentar veröffentlichen