Legal Proceedings: US court accepts Argentina debt case

Argentina requests review of key ruling in fight against hedge funds seeking to force it to pay up on defaulted bonds.

WASHINGTON: The US Supreme Court yesterday accepted Argentina’s request to review a key ruling in its fight against hedge funds seeking to force the country to pay up on defaulted bonds. In the second of two petitions the country has made to the court, Argentina has objected to a lower court ruling that gave hedge fund bondholders the power to pursue the country’s non-US assets. Argentina argues that the US Foreign Sovereign Immunities Act protects its property, including financial assets, from creditors. According to a brief filed in December last year, the US Justice Department urged the Supreme Court to accept the appeal, arguing that the Foreign Sovereign Immunities Act (FSIA) protects foreign governments’ property unless it is used for a commercial activity in the United States.

Published in The Express Tribune, January 12^th, 2014.

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