December 9, 2013
Hedge funds celebrate US Court ruling: ‘Argentina is not above the law’
Hedge funds celebrated the decision of the Second US Circuit Court of Appeals in New York, denying the payment strategy presented by the national Government to cancel an unpaid debt from 2001.
Theodore B. Olson, Elliott Management’s attorney stated: “The ruling confirms that Argentina is not above the law”.
In addition, Olson said it was an “unanimous and a reasonable decision” by the magistrates that “condemns in an appropriate way, the continuous violations of Argentina’s liabilities”.
The American Task Force Argentina (ATFA), which is also financed by Elliot Management, showed signs of conformation. Robert Raben, chief of the AFTA assured that the decision “was a victory for the rule of law, and a defense for the contracts made in the United States”.
“In order to collect billions of dollars, at a low interest rate in the US financial markets, Argentina promised to submit herself under the United States jurisdiction, sticking to New York’s law, and abandoning it’s sovereign immunity”, added Raben.
Meanwhile, Horacio Vázquez, one of the Argentine's bondholders manifested his support with the ruling. “It is an opportunity for my government to do what it has to be done and to negotiate with good faith”.
Yesterday, Argentina 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.