December 5, 2013
Bondholder fight: Argentina loses US appeal; SC appeal resolution pending
Argentina today lost its appeal of a US judge's order requiring that it pay $1.33 billion to bondholders that did not participate in two restructurings following the country's historic $100 billion default more than a decade ago.
The decision by the 2nd US Circuit Court of Appeals in New York marked a victory for the so-called "holdout" bondholders, led by NML Capital Ltd, a unit of billionaire hedge fund manager Paul Singer's Elliott Management Corp, and Aurelius Capital Management.
The 2nd Circuit said enforcement of the injunctions would be stayed, pending resolution of an appeal of an earlier decision last year to the US Supreme Court, and avoiding a technical default by Argentina.