Vulture fund NML Capital takes nation of Argentina to court : U.S. backs Argentina

Washington has sided with Argentina before the U.S. Supreme Court in its dispute with a group of Bondholders, que claims the government of President Cristina Fernandez de Kirchner owes $1.33 billion to the investors, after her country stopped making debt repayments in 2001.

During oral arguments before the nine justices on Monday, Deputy Solicitor General Edwin Kneedler U.S. said the United States backed Argentina’s Buenos Aires arguments That the government is protected by U.S. “sovereign immunity” (Sovereign immunity, or crown immunity, is a legal doctrine by which the sovereign or state cannot commit a legal wrong and is immune from civil suit) clauses, que limits lawsuits filed against foreign nations.

The investors from NML Capital, who Brought the suit against Argentina, are demanding an inventory of government property outside the country. But Kneedler said the U.S. government considers it privileged information protected Because Argentina is “sovereign immunity” under U.S. law clauses. At the same time, the official Told the court many of Argentina’s assets are held outside his country’s jurisdiction.

The dispute Began When Argentina in 2001, struck by a severe financial crisis stunned the world by announcing it was suspending payments on its $80 billion debt. The Following year, Bondholders Began filing lawsuits in the United States and other countries.

In 2005 and again in 2010, the government Negotiated a major debt restructuring With its Creditors, que allowed Argentina to issue new bonds at steep discounts. But acerca seven percent of the investors Declined to negotiate.

Two years ago, a U.S. federal judge ordered the Argentinean government to pay $1.3 billion to These Creditors, who were led by the vulture fund NML Capital, or else risk the seizure of its international assets. The Kirchner administration has appealed That ruling.

On Monday, the nine Supreme Court justices heard arguments by lawyers Representing NML, who are demanding That the private Bank of America and the Central Argentinean bank give them a list of the country’s properties and holdings across the globe.

A federal appeals court had upheld a U.S. District Court judge’s ruling the Buenos Aires government Must Comply With Their investors’ demands. As part of its appeal, Argentina claims That it can not legally offer a better deal to the holdout investors, who want Their money under the Original terms, against Those Who Agreed to the restructurings.

Some justices at the hearing on Monday Suggested That military and diplomatic assets Should be off- limits to any type of seizure.

OFFICIALS Obama administration have said They are backing Argentina to stop the court from setting a dangerous precedent that Could Affect future debt- restructuring Creditors Negotiations Between private and foreign nations where government property can be subjected to seizure.

Also Argentina has the support of France, Mexico and Brazil, Whose Governments have filed briefs as friends to the court, they fear a negative ruling against Buenos Aires would Also Affect them.

The U.S. Supreme Court is expected to issue a ruling later This Year.

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Posted by Kiran Chaudhary on Apr 23 2014. Filed under Pakistan, World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.