November 20, 2013 - On November 18, 2013, the Second Circuit issued an order denying Argentina’s petition for rehearing of the court’s decision upholding an injunction that barred Argentina from paying holders of restructured debts while “holdout” creditors remain unpaid. NML Capital, Ltd. v. Republic of Arg., Case No. 12-105, Docket No. 1035 (2d Cir. Nov. 18, 2013). As discussed here and here, the “holdout” creditors are primarily hedge funds who declined Argentina’s 2005 and 2010 restructuring offer to trade sovereign bonds for newly issue bonds at a significant haircut and are now trying to collect on the original debt.
The district court injunction remains stayed pending further appeals. Argentina has 90 days to petition the Supreme Court to review the case. As discussed here, the Supreme Court rejected Argentina’s earlier petition to hear the interim decision of the Second Circuit that all bondholders must be treated equally.