Tuesday, November 25, 2014
S. Court rules against Griesa, favours gov’t
The Supreme Court ruled against US Judge Thomas Griesa who has ordered Argentina to pay bondholders over u$s 10 millions. The Court based its decision in the “violation of the public order” that the payment would entail.
The country’s top Court has favoured the federal government in its longstanding battle against holdout creditors, saying that the claim from holders of Global External Bonds (with maturities in 2008, 2010 and 2017) violates the public order by seeking payment outside the framework of the sovereign debt restructuring process.
The ruling was signed by Justices Eugenio Zaffaroni, Juan Carlos Maqueda and Elena Highton, although not by Ricardo Lorenzetti or Carlos Fayt.
Judge Griesa had ordered Argentina to pay on November 19, 2007 and his ruling had been rejected by the country’s lower courts. They argued that it was against Argentina’s sovereign inmunity and that the matter was beyond Griesa’s jurisdiction.
In this new ruling, the Supreme Court referred to last March’s “Claren” case, in which the Argentine Judiciary had rejected Griesa's call for Argentina to pay u$s 7.5 millions to bondholder Claren Corporation. At that time, the Court said thaat the hedge fund could not use a foreign ruling to act outside of “the public debt restructuring process set by the Argentine State.”
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