Tuesday, February 18, 2014

Gov't requests Supreme Court review in 'Vulture Fund' case

The Argentine government has formally filed a petition seeking the US Supreme Court review of a court order requiring it to pay $1.33 billion to bondholders who refused to take part in two previous debt restructurings.

The petition, which had been expected, followed a decision by the 2nd US Circuit Court of Appeals in New York on Nov. 18 to deny a petition for rehearing filed by Argentina.

The Economy Ministry explained that the request had been filed with the aim of overturning "incorrect decisions from the lower courts that prohibit our country from carrying out due payment on debt coupons, that are being paid on time and according to agreements, unless creditors who refused to participate in Argentine debt restructurings are paid in full."

"[Those rulings] violate Argentine sovereignty as they attempt to coerce payment to the plaintiffs using reserves that enjoy sovereign immunity," the Ministry explained.

"Due to the fact that bankruptcy procedures do not exist for sovereign states, Argentina followed international practice and successfully restructured almost 93 percent of her debt, complying since then with payments to bondholders."

The petition adds that "these decisions openly threaten the Argentine Republic and its citizens' wellbeing, as well as that of countless holders of Argentine debt," as it asks the Supreme Court "to revise and correct the decisions made by lower courts."

http://www.buenosairesherald.com/article/152434/govt-requests-supreme-court-review-in-vulture-fund-case