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."