The U.S. Supreme Court met privately yesterday to determine how to respond to Argentina's appeal of lower court decisions ordering it to repay more than $1.3 billion in defaulted bonds, the Associated Press reported yesterday. U.S. lower courts have ordered Argentina to pay that amount plus interest to hedge funds led by billionaire Paul Singer's NML Capital Ltd., which snapped up the debt left unpaid when the Argentine economy crashed in 2001-02 and went to court seeking payment in full. Holders of 92 percent of the debt agreed long ago to accept bonds of lesser value in exchange for regular debt payments. The justices aren't expected to announce their decision until next week. The court could ask for input from President Barack Obama's administration or send the case back to the New York appeals court for more information on how to interpret state law. Although it is highly unlikely, the court could also decide whether to take the case or turn it down.
http://www.foxnews.com/world/2014/06/11/us-supreme-court-justices-to-de…
For more on this case, be sure to attend next Friday's Cross-Border Debt Symposium. James E. Millstein of Millstein & Co. (Washington, D.C.) will provide a keynote examining the Argentina case and its implications for sovereign debt restructuring. Register here:
http://www.abiworld.org/CB14/