Court Won't Rehear Argentina-Elliott Case

Mar 27 2013 | 10:42am ET

Argentina has suffered another court defeat in its battle with hedge fund Elliott Associates over its 2001 default.

The U.S. Second Circuit Court of Appeals will not rehear the country's appeal of a lower-court ruling that bars Argentina from paying bondholders who accepted its debt exchanges before it pays holdouts, like Elliott affiliate NML Capital. A three-judge panel of the court in October upheld that ruling.

Argentina had sought a rehearing before the full court. It can still appeal to the U.S. Supreme Court; the country has vowed to exhaust its legal avenues.

The two sides are still waiting on another ruling from the Second Circuit, over whether the lower-court judge was correct to lift a stay which allows Argentina to continue paying exchange debtholders during its appeals. During a contentious hearing last month, the court did not appear inclined to leave the stay in place, and Argentina suggested it would ignore any rulings contrary to its wishes.

Argentina has until Friday to respond to a request from the Second Circuit for an alternative payment proposal.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of