Sovereign-Debt Restructuring Update
On November 21, 2012, a U.S. district court ordered Argentina to pay $1.3 billion to holdout bondholders no later than December 15, 2012. See NML Capital, Ltd. v. Republic of Argentina, 2012 BL 329726 (S.D.N.Y. Nov. 21, 2012). The ruling came on the heels of the Second Circuit’s ruling in NML Capital, Ltd. v. Republic of Argentina, 699 F.3d 246 (2d Cir. 2012), where the court upheld a lower-court order enjoining Argentina from making payments on its restructured debt without making comparable payments to holdout bondholders. Argentina received a temporary reprieve of its obligation to make payments to holdout bondholders on November 28, 2012, when the Second Circuit stayed the ruling until it has an opportunity to hear the merits of Argentina’s appeal, scheduled for argument on February 27, 2013.