Economy will ask the Court of Appeals to review its contrary ruling today

La Nacion

Economy will ask the Court of Appeals to review its contrary ruling today

 

Friday, September 06, 2013

 

By Florencia Donovan

 

Time is gold for the government in the legal battle against the vulture funds.   So, in the Economy Ministry has scheduled taking advantage of each one of the procedural instances that American courts have, beyond that, in advance, private experts warn that the country has few chances for success.

 

According to official sources, Argentina’s attorney will filed today before the U.S. Court of Appeals the petition for review of the ruling that, 14 days ago, favored the fund NML.  The Court exactly two weeks ago upheld the sentence of the lower court judge, Thomas Griesa, which established, in a few words, that the country had to pay the holdouts the debt of US$1.33 billion, while it stayed the execution of the ruling until the Supreme Court decides if it accepts taking the Argentine case or not.

 

The attorneys for Argentina also will be able to file before the Court of Appeals asking it to review the ruling “en banc”, after which all the members that make up the appellate court give their opinion on the case.

 

LA NACION tried yesterday to communicate via email with Economy spokesmen to confirm the subsequent actions by the government, but got no response at all.  

 

According to the procedural steps of American legislation, once the Court of Appeals denies “en banc” review, Argentina then will have 90 days to appeal to the U.S. Supreme Court.  It is estimated that this step could come at the end of December or even the start of next year, as the Court of Appeals has no defined deadline for giving responses to full review.  “It is possible that the government has time even until 2015,” ventured Anna Gelpern, professor at The American University Washington College of Law, who is closely following the Argentine case.  “Because the Supreme Court is not deciding the appeal in the same instant, but there are many parties involved.  The whole process could take time,” she told LA NACION.

 

According to the firm Shearman Sterling, based in New York, the holdouts will have a period of 30 days from when Argentina files before the Supreme Court, to file its brief in opposition.  Then, the Argentine government has another 14 days to give its response and again file arguments in favor.  The Supreme Court finally has a deadline for issuing its definitive ruling.

 

"I think that any appeal in the Second Circuit will fail,” Gelpern warned, however.  “With the Supreme Court it’s also unlikely, but in this instance there are more factors in play and it’s difficult to anticipate the certain science that could follow,” she clarified.  

 

For Gelpern, Argentina’s strategy to offer the holders of bonds with international legislation the possibility of changing their bonds for others with Argentine law (and that can therefore stay outside of possible attachments by American courts) is “monumentally risky” as it could speed up the timing of the Supreme Court.  

 

"Beyond whether they implement this operation today or in the future, it’s a technicality.  They seemed to be saying that, whatever the Court decides, they will not accept it, at the same time that they’re asking the court to give them more time,” Gelpern illustrates.  As LA NACION had anticipated, the state news agency Telam confirmed that, in reality, the swap of restructured bonds with foreign law for Argentine law will not be immediately implemented, but that it will be resolved after the decision of the Supreme Court with regard to if it accepts the appeal requested by Argentina.  

 

Between the vultures and default

 

Argentina still has a way forward  

 

Argentina’s attorneys will file today before the U.S. Court of Appeals the request for review of the ruling that, two weeks ago, favored the vulture funds.  It could also solicit the “en banc” review, which is, by the full court.  

 

·         The Court, in December

If the Court of Appeals refuses review, something that most of those involved assume, Argentina will have 90 days to appeal to the Supreme Court.  It is estimated that it could do so between December and the start of next year.  

 

·         Briefs, in February

Those supporting Argentina will have 30 days to filed their briefs in favor, while those who oppose it will also have the same time period.