Argentina Weighs Potential Default and Sovereignty

October 13, 2016

Argentina was struck with two blows of overwhelmingly bad news on Monday when the US Supreme Court refused to hear Republic of Argentina v. NML Capital, Ltd., then ruled against the South American country, allowing US hedge funds to subpoena Argentinean banks for the locations of public assets worldwide. In 2012, a lower federal court presided over by US Judge Thomas Griesa decided Argentina must pay back its debts in full to several “holdout” hedge funds by the bond service deadline on June 30th.

Argentine Debt Mediation Continues

October 13, 2016

As the deadline of June 30th came and went, Argentina attempted to make $832USD million in payments to restructured hedge funds, but was forced to take the money back by Judge Thomas Griesa who ordered the original debt ruling back in June.1 The New York Courts demanded BNY Mellon give back the $539 million it received from Argentina, deeming the payment in violation of the equal payment clause. Griesa decided that Argentina must make payments to both the restructured hedge funds and the holdouts or service neither.

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