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Argentina asked a U.S. appeals court to reconsider an Oct. 26 decision that it can’t make payments on restructured sovereign debt without also paying holders of its defaulted bonds.
The Argentine government today asked for a rehearing, before a three-judge panel or before the entire U.S. Court of Appeals in New York. The government said in a court filing that the earlier ruling threatens “a seismic change in the landscape of sovereign debt restructuring.”
The October decision was a victory for Elliott Management Corp.’s NML Capital Fund and other investors that are trying to collect on $1.3 billion in the defaulted bonds. The appeals court returned the case to U.S. District Judge Thomas Griesa in Manhattan to determine a payment formula and to explain how the court’s orders apply to intermediary banks and other third parties.
In a court conference Nov. 9, Griesa said he would rule on those questions by Dec. 1. Argentina is scheduled to pay more than $3 billion to holders of its restructured bonds in December.
The case is NML Capital Ltd. v. Republic of Argentina, 12-105, U.S. Court of Appeals for the Second Circuit (Manhattan).
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