Argentina Loses Appeal In Bondholder Fight As Court Sides With Bondholder Group Led By Elliott Management

 

Next up: Supreme Court, if it is willing to take the case.

In a victory for investors in sovereign securities, the 2nd Circuit Court of Appeals ruled against Argentina’s appeal of the court order requiring Argentina’s payment of $1.3 billion to the holdouts from its restructurings in 2005 and 2010.  The court stayed the ruling as the parties wait for the U.S. Supreme Court to chime in.

Argentina claimed that a requirement to pay its debts is an infringement on its sovereignty, which should be noted by anyone who invests in government bonds.  We’re looking at you, E.U.

Argentina has also publicly stated that they won’t abide by any rulings requiring them to repay the money they borrowed from their lenders.  They also claimed that the debt markets would be in chaos if they were forced to pay their debts and that a requirement that Argentina pay its debts may result in default.

Elliott Management and Aurelius Capital Management led the insurgency and have been winning so far.  There is one battle left.

Our previous coverage of this saga is here.

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