One of Argentina’s last hopes in its fight against a few hedge fund creditors was that The Supreme Court would hear the country’s case and rule in its favour.
Now that’s gone. The Supreme Court has refused Argentina’s plea to hear the case. The country can appeal, but it doesn’t look good.
In June, Argentina filed a writ of certiorari to the U.S. Supreme Court asking the court to overturn a ruling by the 2nd U.S. Circuit Court of Appeals made last October.
That ruling would force Argentina to pay a few hedge funds $US1.33 billion, since they refused to take a 70% haircut on the investment they made in the country during its last economic collapse.
Those hedge funds are being led by Paul Singer’s Elliott Management, and they’ve gone to extreme lengths to get Argentina to pay up — like getting a Ghanaian Court to impound an Argentine naval ship harbored in Ghana last year, and holding it for collateral.
It was months before Argentina’s ship, La Fragata Libertad, and its crew were able to go home.
Argentina’s President, Cristina Fernandez de Kirchner, hasn’t calmed her rhetoric against the bondholders, though. She still calls them “vultures” and has made this issue a part of the country’s national identity.
So we expect to see these two back in the ring in a few months.