Sovereign Debt Update
On October 7, 2013, the Supreme Court denied Argentina’s seemingly premature petition for the court to review a nonfinal 2012 ruling by the Second Circuit (NML Capital, Ltd. v. Republic of Argentina, 699 F.3d 246 (2d Cir. 2012)) upholding a lower court’s orders barring Argentina from paying holders of debt restructured in 2005 and 2010 without also paying holdout bondholders in full but remanding to the trial court on the issue of implementation of the remedy. The request to lift the stay was made on October 15 by holdout bondholders led by hedge funds NML Capital Ltd, a unit of Elliott Management Corp., and Aurelius Capital Management, LP. The U.S. Supreme Court is expected to have the opportunity to review another appeal from Argentina in the next four months.