A group of creditors led by activist investor Paul Singer who have tried repeatedly to collect from Argentina, just ran into another wall.
A U.S. court decision on Monday stated that the creditors, made up of mostly hedge funds, cannot seize the assets from the country’s central bank, The Wall Street Journal reported.
The decision, handed down from the 2nd Circuit, reverses a June New York district court ruling that would have opened up Argentina’s reserves to claims from the funds.
The creditors hold claims of $US2.4 billion, according to The Wall Street Journal report.
The creditors have failed numerous times to collect the debt — a fraction of the $US80 billion in debt the country defaulted on in 2001.
The ruling is significant as a 2014 Supreme Court decision that sent Argentina into default also gave the country’s creditors the right to discover its assets all over the world. This most recent ruling is a check on that ability.
Read the full Wall Street Journal article here.
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