Argentina files suit to avoid paying Elliott Management in battle of naval powers.
We have previously stated our admiration for the naval prowess of Elliott Management. But, Argentina continues to fight back.
Argentina has asked the U.S. Supreme Court to rule that it does not have to pay holders of its defaulted bonds, such as Elliott Management, before it pays holders of its restructured debt. The claim revolves around application of the Foreign Sovereign Immunities Act, which basically tells investors to pray for a U.S. bailout when investing in countries like Argentina. Argentina also stated that it could be exposed to an additional $43 billion in obligations leading to another default if it has to pay on the defaulted bonds, which could lead to more defaulted bonds.
Part of the case is still pending in the Second Circuit.