The Justice Department has asked the U.S. Supreme Court to take up a case involving Argentina and its defaulted debt, Global Post reports. Lawyers for the federal government argue Second Circuit precedent giving "hedge fund bondholders the power to pursue the country's non-US assets was wrong," Global Post further reports.
The Justice Department's brief increases the chance the justices will grant certiorari, Global Post also reports.
Reuters reports that the U.S. Supreme Court did not take action today on a case involving what Argentina owes some bondholders after its default over a dozen years ago. "Based on the court's usual practice, Tuesday's development may mean either that the court will decline to hear the case or that it will ask the Obama administration to weigh in on whether the dispute is worth the court's attention," Reuters reported.
My prior post is here: http://www.cultivatedcompendium.com/news/argentinian-debt-default-heads-...
Long after Argentina rebounded from its 2000-2001 financial crisis, lawsuits over its debt are still working their way through the American courts. Some cases are not yet at the U.S. Supreme Court, but the Buenos Aires Herald reports "the case that is now in the hands of the US Supreme Court is the one that relates to whether Argentina violated an equal treatment clause known as 'pari passu' because it failed to treat all creditors equally." The case is up for the justices to decide whether to grant certiorari. The Second Ciruit ruled Argentina had breached the contractual promise to treat bondholders equally, the Buenos Aires Herald reported.
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