Court Puts Argentina Payment To Elliott On Hold

Nov 29 2012 | 1:29pm ET

Just weeks before facing the unpleasant choices of paying the hedge funds it calls "vultures" or defaulting for the second time in a decade, Argentina has won a crucial reprieve.

The same federal appeals court that last month upheld a ruling that requires Argentina to pay holdouts from its debt restructuring, led by hedge funds Elliott Associates and Aurelius Capital Management, reinstated a stay on that ruling that a lower-court judge junked last week. The reprieve, even if it is temporary, means that Argentina will not default on its exchanged debt next month. Its next payment after that is not due until March.

The U.S. Second Circuit Court of Appeals scheduled a hearing for Feb. 27 on the matter. Argentina had asked the court to stay the ruling until it exhausts its appeals, which could feature a rehearing by the full Second Circuit—a three-judge panel of that body rejected Argentina's first appeal in October—or a hearing before the U.S. Supreme Court.

A stay was also pushed for by Argentina's exchange bondholders. While Argentina had no comment on the ruling, a lawyer for its creditors said that the decision "signals [the court's] understanding of the serious constitutional and equitable issues at stake."

The ruling is a blow for Elliott and the holdouts; U.S. District Judge Thomas Griesa had ordered Argentina to pay $1.3 billion into an escrow account to cover payments due them on the defaulted debt. Griesa also signaled that he had run out of patience for Argentina, writing, "the less time Argentina is given to devise means for evasion, the most assurance there is against such evasion."


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.