Argentina In Contempt Of U.S. Court At Hedge Fund’s Request

Jun 1 2009 | 10:23am ET

A U.S. hedge fund battling Argentina over bonds it defaulted on seven years ago has won its bid to have the country held in contempt of court.

A federal judge last week granted Aurelius Capital Partners’ motion to hold both Argentina and its social security agency in contempt for failing to produce documents ordered by the judge. Aurelius is suing Argentina and the agency, Anses, over the 2002 default.

U.S. District Judge Thomas Griesa had previously ruled that Anses and the Argentina government were one and the same, rejecting Argentina’s argument that they are separate entities. Griesa has frozen some of the state-run pensions administrator’s assets in the United States, which are managed by Anses.

“The Republic has the power to see that Anses provides” the documents about transactions Anses made through a private brokerage.

A lawyer for Argentina told the court that its economic ministry had asked Anses for the information, but had been rebuffed.

“Anses, consistent with its view that it is not subject to the jurisdiction of this Court and otherwise has sovereign immunity protections as it were, said no,” Carmine Boccuzzi said.

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