Politics, Business & Culture in the Americas

U.S. Supreme Court Rules against Argentina’s Appeal on Debt



In a victory for the New York-based hedge fund, Elliot Management Corp., the U.S. Supreme Court decided against hearing an appeal from Argentina on Monday, meaning that the South American nation will have to meet its debt obligations on defaulted notes from 2001 in full, despite having restructured its debt.

The Argentine government has until June 30 to reach a settlement before the payment is due to all creditors who refused to accept the country’s debt restructuring, including Elliot Management Corp., at a cost of $15 billion. The high court’s decision not to hear the case is the culmination of a series of restructurings and settlements that took place after Argentina defaulted on $81 billion of liabilities in 2001.

Argentina has 25 days to request a rehearing from the Supreme Court, an outcome that experts deem unlikely. As the Argentine stock market plummeted, President Cristina Fernández de Kirchner addressed the nation Monday evening stating that the country would only make payments to holders of restructured debt, defying a lower U.S. court’s ruling.

Like what you've read? Subscribe to AQ for more.
Any opinions expressed in this piece do not necessarily reflect those of Americas Quarterly or its publishers.
Sign up for our free newsletter