December 10, 2013
Justices continue to meet todayTuesday, October 1, 2013
US Supreme considers hearing Argentina case
Argentina has called for tenders The Supreme Court ended its first day of closed-door meetings yesterday without issuing a decision on whether it will agree to hear a high-profile appeal by Argentina over its battle with hedge funds that refused to take part in two debt restructurings that sprang from the country’s record-breaking 2002 default.
Argentina has appealed an October 2012 ruling by the Second US Circuit Court of Appeals in New York in which the court said the government had broken a contractual obligation to treat bondholders equally, known as pari passu.
There is no word on when the US highest court will make its decision public. Although the court would likely make an announcement today if the justices on the nine-member court agree to hear the case, an announcement could come next week or even later.
The Supreme Corut is now deciding the entire list of cases it will analyze starting on October 7 until the end of June 2014 — around 80 in total.
One of them could involve Argentina, which carried out two restructurings, in 2005 and 2010, in which creditors holding about 93 percent of sovereign debt agreed to participate in debt swaps that gave them 25 cents to 29 cents on the dollar.
But bondholders led by hedge funds NML Capital, a unit of Paul Singer’s Elliott Management, and Aurelius Capital Management went to court, seeking payment in full.
The court’s online docket said the case was up for discussion yesterday. If the court decides against hearing the case, that would be made public on October 7, the first day of the court’s new term.
The court could also ask the Obama administration to weigh in on whether it thinks the case merits the justices’ attention, which would delay any further action.
The US Supreme Court has one other option, which is to take no action on the petition and delay making a decision until a later date.
The litigation is still ongoing in the appeals court in New York. In August, that court issued another ruling, upholding a lower court’s order that Argentina pay the bondholders US$1.33 billion.
The court stayed its decision pending Supreme Court review. Argentina also has asked the appeals court to reconsider its decision.
Herald with Reuters