MercoPress. South Atlantic News Agency
Brazil, France and Mexico to file papers before the US Supreme Court in support of Argentina
The case is being closely watched because of its potential impact on future sovereign debt restructurings. Brazil, France and Mexico are expected to file papers in the US Supreme Court on Monday backing Argentina in its legal battle with bondholders who refused to take part in debt restructurings from the country's 2002 default, according to a source familiar with the litigation.
Lawyers for the three countries will support Argentina's request that the high court review a court order requiring it to pay 1.33 billion to “holdout” creditors led by hedge funds Aurelius Capital Management and NML Capital Ltd, a unit of billionaire Paul Singer's Elliott Management Corp.
France had previously supported Argentina in an unsuccessful attempt last year to obtain Supreme Court review at an earlier stage of the legal fight.
The litigation has created concerns about a potential debt crisis. Argentina defaulted on 100 billion more than a decade ago.
The case is being closely watched because of its potential impact on future sovereign debt restructurings.
If justices on the top US court agree to hear the case, a decision could come between October, when the next term begins, and June 2015, the end of the term.
Creditors holding about 93 percent of Argentina's bonds agreed to participate in the two previous debt swaps in 2005 and 2010, which gave them 25 to 29 cents on the dollar.
The case is Argentina v. NML Capital, US Supreme Court, 13-990.
Top Comments
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Read all commentsArgentina shouldn't get too excited.....any sign of it going against them and France will put up the white flag and bail out. Mexico is only in it as an agreement to send the narcos to Nordelta (donde la gente vive bien) in Buenos Aires and Brazil may want to use a couple of stadiums if they don't get theirs finished before June. Not exactly a formidable alliance.
Mar 24th, 2014 - 08:04 am 0@1
Mar 24th, 2014 - 10:40 am 0We don't need them to win anyway. Argentina stands up against the alliance of the entire combined forces of the planet in trade, in debt, and in other areas, simultaneously.
And you are still losing, my dastardly Anglo.
@2
Mar 24th, 2014 - 11:46 am 0If you paid your debts you would not be having to go with a begging bowl to find money. How would you like it if I borrowed money from you and then I said I will only pay you 30% of it back. I bet you wont answer.
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