Supreme Court To Hear Argentina Subpoenas Appeal

Jan 13 2014 | 1:18pm ET

Argentina will have at least one day before the U.S. Supreme Court as it continues to fight paying hedge-fund holdouts from its 2001 default.

The high court on Friday agreed to hear Argentina's appeal of subpoenas issued by Elliott Management to Bank of America and Banco de la NaciĆ³n Argentina about the country's assets. The case in question does not deal with the central matter between Argentina and its hedge-fund adversaries: whether the country should be forced to pay the holdouts in full, or default on its restructured debt.

The Supreme Court in October declined to hear Argentina's appeal in that case. Argentina is likely to seek the court's ear on the matter again after the U.S. Second Circuit Court of Appeals in November upheld its decision to force Argentina to pay.

In the subpoenas case, Argentina is seeking to block Elliott's requests, which include records of its own bank accounts and those of leading public officials, including President Cristina Kirchner. Kirchner has been among the most bitter opponents of the holdouts, vowing never to pay them.

The hedge fund says it needs the records to learn how Argentina moves its money around the world, to allow it to seek to collect on some $1.6 billion in legal judgments it has won against the country.

"Federal law does not give Argentina a right to conceal its assets from its lawful creditors," Elliott lawyer Theodore Olson said.


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