No $250 Million Upfront Payment For Argentina, Court Rules

Dec 7 2012 | 11:22am ET

Argentina's recent string of U.S. court victories continued this week when a federal appeals court rejected Elliott Associates' bid to force the country to put up $250 million as the country continued to fight an ordered payment to Elliott's NML Capital and other holdouts from its 2002 debt default.

The Second Circuit Court of Appeals in Manhattan dismissed the request, which NML and Aurelis Capital Management argued was necessary to ensure that they would be paid should Argentina lose its appeals, which it has vowed to take all the way to the U.S. Supreme Court if necessary.

The same court—somewhat surprisingly—last month stayed a lower-court order that would have forced Argentina to pay the holdouts, which it has vowed to never do, by Dec. 15 or default on its restructured debt. A hearing is scheduled for late February on that stay.

Also this week, holders of Argentina's euro-denominated bonds sought to join Argentina's overall appeal of the lower-court decision, which was upheld earlier this year by the Second Circuit. Those creditors, led by Knighthead Capital Management, Redwood Capital Management and Perry Capital complained, "because the district court made no attempt to tailor those orders, they would apply to all of the Republic's alleged 'agents and participants' anywhere in the world—even parties that disburse monies to the holders of the euro bonds and reside outside of the U.S., beyond the jurisdiction of the district court."


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...