Thursday, March 24, 2016
US gov't supports Argentina appeal in debt dispute
The government of the United States has “significant foreign policy interests” to find a “rapid” resolution to the long-standing dispute between Argentina and so called vulture funds, the US Department of Justice said in a statement released today as Barack Obama ends a two-day visit to the country during which he expressed his firm support to the administration of Mauricio Macri.
On Wednesday, the US Justice Department filed a request to the 2nd US Circuit Court of Appeals in New York demanding it ratifies a March 2 ruling by US Judge Thomas Griesa approving the lifting of the orders he had originally imposed on Argentina following the country’s 6.5 billion dollar offer to settle the debt dispute.
The US Justice Department said lifting those orders would respond to the interest of the government of that country to support Macri's initiatives to strengthen the Argentine economy.
Earlier this week, lawyers for three bondholder groups that have not reached settlements with Argentina sent letters this week to the US Justice Department, arguing that the US government should not back Argentina’s position in its litigation over defaulted sovereign debt.
The bondholder letters, sent by Milberg, Proskauer Rose and McDermott Will & Emery, allege that Argentina has refused to negotiate with small investors who collectively hold nearly US$1 billion in defaulted bonds, despite recently reaching agreements with the majority of bondholders who declined to participate in previous sovereign debt restructurings, including the hedge funds NML Capital and Aurelius Capital.