Elliott Seeks, Then Cancels Hearing On Argentine Debt Plans

Aug 30 2013 | 10:56am ET

Elliott Management cancelled an urgent hearing with the judge overseeing its battle with Argentina without explanation.

Elliott had sought the urgent hearing just 24 hours earlier, after reports that Argentina was taking steps that would allow it to sidestep U.S. District Judge Thomas Griesa's rulings that the country pay Elliott and other holdouts from its 2001 default in full. That ruling was upheld by a federal appeals court last week.

The hedge fund planned to ask Griesa to force Argentina to pay it the $1.33 billion it is owed as soon as next month to preempt the country's plans, the New York Post reports. But it decided against doing so yesterday and did not give a reason.

The U.S. Second Circuit Court of Appeals last Friday upheld Griesa's order that Argentina pay up—but stayed the ruling to allow Argentina to appeal the decision to the U.S. Supreme Court.

Argentina has vowed never to pay Elliott and the other holdouts and has said it would ignore any U.S. court rulings that attempted to force it to do so. The standoff leaves open the possibility that Argentina would default on its exchanged debt.

To avoid that, Argentina this week announced it would reopen its 2005 debt exchange, allowing holders of Argentine bonds issued under U.S. law to exchange them for local-law bonds. Investors who do so would be unaffected by a default in the U.S.

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