Tuesday, 31 May 2016
Last updated 3 days ago
Feb 26 2013 | 2:27pm ET
Elliott Associates, Argentina and Argentina's legal allies will meet in court again tomorrow to determine whether Argentina will be forced to pay the hedge fund.
Lawyers will offer their arguments for why—or why not—Argentina's stay of a lower-court order that would have forced it to pay Elliott affiliate NML Capital and other holdouts from its 2001 default before it pays the more than 90% of bondholders who accepted its debt exchanges in 2005 and 2010. Lawyers for the exchange bondholders and for the Bank of New York Mellon Corp., the trustee for the exchange bondholders, will also get a chance to make their case before the Second Circuit Court of Appeals in Manhattan.
The main antagonists will be David Boies for Argentina and Theodore Olson for NML. The two men where also on opposite sides of the Bush v. Gore Supreme Court case that decided the 2000 presidential election.
Argentina has appealed a lower-court ruling that it must pay $1.3 billion in escrow to Elliott and other holdouts from its 2001 default before it pays the more than 90% of bondholders who accepted its debt exchanges in 2005 and 2010. The Second Circuit has already rejected Argentina's appeal in the main case; this hearing will determine whether the lower-court judge was correct to lift an injunction allowing Argentina to continue paying the exchange bondholders while it seeks further appeals.