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Montevideo, September 20th 2018 - 02:54 UTC

Argentina/hedge funds dispute: US will not file ‘uninvited’ brief to Supreme Court

Saturday, July 20th 2013 - 06:03 UTC
Full article 16 comments
The US Supreme Court is expected to act on the appeal in late September or early October The US Supreme Court is expected to act on the appeal in late September or early October

The Barack Obama administration won’t file a brief next week urging the U.S. Supreme Court to hear Argentina’s appeal in a clash with implications for tens of billions of dollars in defaulted debt, according to a Justice Department spokesman.

The decision is a setback for Argentina, though it leaves open the possibility that the administration might recommend high court review at a later stage. The administration backed Argentina at a federal appeals court.

Argentina is appealing a lower court ruling that bars payments to the investors in restructured Argentine debt unless holders of the nation’s defaulted bonds, led by billionaire Paul Singer’s Elliott Management Corp. and its NML Capital Ltd. unit, are also paid.

The U.S. government usually waits for the justices to ask for a brief before taking a stand on requests for a Supreme Court hearing.

Brian Fallon, the Justice Department’s spokesman, said the administration won’t file an “uninvited” brief, which would be due by July 26. The decision, which came after U.S. officials met with lawyers on both sides of the case, was reported earlier by La Nacion and Clarin in Argentina.

The International Monetary Fund said this week it is considering backing Argentina’s bid for review. Under its normal schedule, the high court will act on the appeal in late September or early October.

Argentina contends a New York-based federal appeals court failed to properly apply the Foreign Sovereign Immunities Act, which limits suits against foreign governments. The country has said that forcing it to pay the defaulted bondholders immediately would expose it to $43 billion in additional claims it can’t pay and trigger a new default.

The Supreme Court case is Argentina v. NML Capital, 12-1494. The appeals court case is NML Capital Ltd. v. Republic of Argentina, 12-00105, U.S. Court of Appeals for the Second Circuit (New York).
 

Top Comments

Disclaimer & comment rules
  • Think

    No sweat, Barak.....
    We will let the IMF fill that brief....
    (Don't worry, Daddy is not angry.... just dissapointed :-)

    Jul 20th, 2013 - 06:33 am 0
  • reality check

    So now the wicked IMF are the champions of the Republic, ah what a fickle bunch you are!

    Jul 20th, 2013 - 07:35 am 0
  • yankeeboy

    Argentina has been blacklisted, it is on its way to being declared a failed narco state and money launderer.
    I have said for a long time the USA wants to use Arg as an example of what happens when you are a scofflaw.

    Jul 20th, 2013 - 11:09 am 0
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