Today, the U.S. Supreme Court has declined to hear Argentinas appeal that it shouldnt have to pay a group of hedge funds billions the group says it is owed. Technically, Argentina now risks defaulting. This last resort appeal was Argentinas last official means of avoiding paying back investors who purchased Argentine debt more than a decade ago, but who had refused to participate in a haircut settlement agreed to by other investors that subscribed to the bond issue. Argentina had warned previously it risked default if it was forced to pay the amount in full. The timing of this decision and unwillingness of the U.S. Supreme Court to seek commentary from the office of the Solicitor General placed Argentina in a dreadful position since that country is also grappling with an unrelated $24 billion payment due at the end of the month. Argentina may now seek to settle with the hedge fund group, something it had sought to avoid.
Posted on: Mon, 16 Jun 2014 16:07:42 +0000
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