Argentina Loses Again in Court – This Time in the U.K.

Argentina Loses Again in Court – This Time in the U.K.

February 13, 2015 A group of Argentina's exchange creditors were turned away by a London court today after an English judge refused to intervene into the case brought against Argentina by ATFA member NML Capital. The exchange bondholders were hoping to convince an English court judge to compel Bank of New York Mellon (BNY), the trustee for Argentina's bond payments, to pay exchange creditors with funds that had been previously deposited by Argentina.  While it may not have mattered to the plaintiffs that U.S. District Court Judge Thomas Griesa had already declared any such action to be a violation of the Court's injunction, it mattered to the English Court judge,who said in his ruling:

"The Court is, of course, very concerned not to intrude improperly into matters which are before U.S. Courts."

Let's be 100% clear.  This was a total defeat for Argentina and exchange bondholders, who are already cynically describing it to the press as "a significant step forward."  That's a ridiculous claim.  The English court did not order that BNY was obligated to pay the money to the exchange bondholders, and it also said that it didn't want to interfere with U.S. court proceedings, which have jurisdiction over BNY.  In fact, the only thing agreed to by the English court was something that was never even in dispute – that these bonds were subject to English law.  The defendant, BNY, wasn't even arguing this point. We should also point out that the exchange bondholders tried this same gambit in New York courts first, and failed. Given that forum-shopping in the U.K. has now also failed, we think it's time for Argentina to come to the table and negotiate.  It's remarkable to us that Argentina is unwilling to sit down and negotiate with its creditors, given that thesecreditors have stated repeatedly that they would negotiate a settlement to end the default mess.   Argentina is running out of time and excuses:  RUFO has expired, Argentina's losses continue to mount in Court, and its economy is in collapse.  President Kirchner:  Selling the country to China won't save you.  Negotiation is the answer.  When will you negotiate?

To find out more, visit www.factcheckargentina.org and follow us on Twitter @ATFArgentina.