US court rules in favour of Argentina: denies security deposit requested by hedge funds
US appeals court refused to order Argentina to post a security deposit of at least 250 million dollars while it seeks to overturn a lower court ruling that orders it to pay holdout investors 1.33 billion.
Holdout creditors have sought to force Argentina to deposit the money by December 10 while Argentina appeals last month's order by US District Judge Thomas Griesa that it pay the creditors in full.
Argentina had won a reprieve last Wednesday when the US Second Circuit Court of Appeals in New York said Argentina need not deposit 1.33 billion into the escrow account by December 15 to satisfy the holdout creditors' claims.
Holdouts then filed a motion seeking a security deposit be made to show Argentina was acting in good faith with the court.
“Appellees request that this Court amend its November 28, 2012 stay order by requiring the Republic of Argentina to post security on or before December 10, 2012. IT IS HEREBY ORDERED that the motion is DENIED,” the 2nd Circuit said in its one line ruling.
The 2nd Circuit has scheduled oral arguments in the case for Feb 27, 2013.
The holdout creditors including Elliott Management's NML Capital Ltd and the Aurelius Capital Management funds are seeking full repayment on their defaulted Argentine bonds after spurning debt exchanges in 2005 and 2010 that 93% of other bondholders accepted.
The Argentine government has called the holdout creditors “vultures” and vowed never to pay them.
The latest battle stemming from Argentina's 100 billion dollars sovereign default nearly 11 years ago centres on a 2nd Circuit decision in October that the country violated a bond provision requiring it treat all creditors equally when it paid the exchange bondholders without paying the holdouts.
December 15 is a critical day because Argentina is scheduled to pay 3 billion dollars on warrants issued as part of the debt swaps.
This had raised fears of another default because if Argentina had refused to pay the holdouts, as was expected, US courts could have disrupted payments to holders of restructured bonds.
Argentina next owes money on its restructured debt in March 2013.
The case is NML Capital Ltd et al v. Argentina, 2nd US Circuit Court of Appeals, No. 12-105.
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Its not a victory for argentina at all. The legal status of the court claim hasn't changed and argentina could very much, and is likely too, loose in febuary!
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
The next Victory is to recover our Malvinas Islands that were stolen by pirates!!!!
Don't kid yourself.
Your next victory? What was your previous victory?
so argentina has won the “Holdout” case? No!
IMF have found INDEC figures true? No!
Libertad is back in an Argentine port? No!
WTO has dropped all cases against Argentina? No!
Have companies dealing with FOGL been scared away? No!
Tha Falklanders have voted to become Argentine? No!
as you see “Real victory” is as elusive as Argentinas missing millions, argentina has nothing to shout about so any insignificant ruling in their favor regardless of how ineffectual to the case, must be applauded as not much else is going for them.
being allowed to retreat in a battle does not mean you have won the battle,let alone the war! and Argentina has many wars on its horizon! :))
i would wish them good luck but I wont.
'US court says ”no need for a security deposit pending the outcome of the appeal'
Is this a 'victory'? No, just a holding position whilst the appeal can be heard.
The $1.33billion is still on the table.
Oh yeah; If you think your next victory (i say “next” lightly as you havent had a victory for over 100 years) will be taking back the falkland islands. Well go ahead and try, your rowing boat would sink before you even got past the 6ft depth mark after setting off, either that or your oars would break in two. After all we all know how poorly maintained your navy is. Now don't forget to bring your paint balls, after all thats the only ammo your military has. Hell you muppets couldn't even defend an attack from chile or any of your other neighbours, yet are deluded enough to think you can take on the UK, despite the fact your military is a mere fraction of what it was in 1982, and ours its far more advanced than it was in 1982. Hell we'd only need 500 men max to take you idiots on!
The more desperate they become,
The more time you give them,
The less chance you have of getting your money,
The more they resist paying,
The more other broke nations will take note,
And if in the end, they are allowed to get away with it,
The rest will follow suit,
The money lenders will lose ,
And justice will never be done,
Either force them to pay,
Or let em go.
.
If they would have done the right and honorable thing by going through a managed default they would have been on their road to recovery rather than on the road to another default.
They are very stupid arrogant people and get what they deserve.
@13 Wonder how much the argies paid?
There is no such thing as a managed default. But I guess fibbing is free.
www.atfa.org/
They are a powerless entity here. They have no leverage on Argentina, no loans to cut off, no military aid, no trade deals. All they could do is embargo the country but no one will follow them there, and without the rest of the world they have no power.
The only alternative would be to blockade the country, all 3000km of coastline, but alas, they don't have the military power to do that either anymore.
They are paper tiger who can't even sign a treaty to promote the building of facilities for the handicapped around the world. Their era of leadership is over.
They will economically collapse soon, they have no industries that will lead them to growth, their last 20 years of “gdp growth” were an insane internet bubble where 99% of the businessess failed (by far the all time record of post-bubble legacy), and a real-estate bubble with no fundamentation beneath it.
Fake growth, which is why living standards in the USA have droped 23% since 1974, and salaries are down 10k during the Bush-Obama era combined.
Yup, there' done.
I agree Simon. In the end I do not seeing them winning this appeal. Any stay of execution will need to come from SCOTUS after this bout.
Today in Bongolesia....
/random platitude
Oh dear. I see you're still making schoolboy mistakes in German. Can you see it yourself, or would you like me to tell you?
End of the Obvious.
You really need to stop overcompensating for you lack of formal education tobi
#31 They will be told to pay the holdouts for sure. Think of the message it will send if they do not enforce payments? They are telling every debt ridden, overburden nation that is is ok to not pay. They effects of that message would be disasterous. Argentina was given every chance to play nice in the sandbox, but they insisted on kicking sand in everyone's face. Now it's time for the world to say enough. SA is being run by terrorists of the 70's and the people will be the ultimate payers for there actions.
Oh and look who's back, the now very rotten, spoiled greke yoghurt.
I'm sure you'll agree it's about time Argentina got its own German grammar. That way you won't have to put up any more with all those appalling foreigners telling you how to speak it.
Ok I want to apologize to you as a man. I think you were correct. While the post was removed, I think I said “nicht eine” when it's obviously “keine Floskel”.
So I man up and say you were correct even though you did not say specifically it was that it must have been. Trying to write in four languages does mix things up sometimes, but still it is no excuse. It will not happen again.
#13 =)
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