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

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note