Argentina Scores another Point in Litigation against Vulture Funds

18.09.2015 - Prensa Latina

Argentina Scores another Point in Litigation against Vulture Funds
(Image by Prensa Latina)

Buenos Aires, Sep 17 (Prensa Latina) After the approval at the UN of principles on restructuring debts, Argentina scored another point with a favorable ruling by the Court of Appeals of New York in the litigation with vulture funds.

That organ accepted the Argentinean claim that Judge Thomas Griesa went too far when he accepted the demand of the funds called “me too” that require they are paid the same that main litigation speculative groups.

The Griesa verdict gave the right to some bond holders -who did not participate in the initial demand presented by the vulture funds- to demand payment without demonstrating how much money they should receive for the purchase of those titles after the country fell in default.

The Second Court of Appeals of the U.S. affirmed the judge was simplifying the definition of the type of bond holders affected by his resolutions.

As Argentinean news media reported, judge Richard Wesley admitted it results an exasperating task to define the precise type of bond holder to which Argentina should pay for default damages, as well as calculate those damages in money.

The three magistrate of the Court of Appeals concluded that Griesa was creating many ways to facilitate the access of bond holders which were not the original buyers of titles.

Argentina agreed to a first debt exchange in 2005 and after that in 2010 with 93 percent of its creditors, while the remaining seven percent denied to join those pacts that have guaranteed the sure compliance with debt payments.

From that seven percent, one fifth joined the funds NML Capitals and Aurelius Capiotals to litigate against Buenos Aires and demand an exorbitant payment for bonds they bought from third parties in 2008 at vile prices.

After that, Griesa allowed the rest of bond holders of that small group which did not entered the initial demand, they could claim the initial demand, they could also claim the same payment than litigators NML and Aurelius, but that ruling was now disqualified.

At the UN, Argentina achieved to transform the fight against Judge Griesa’s rulings in a resolution of that organization that creates a new legal framework to solve the needs to restructure sovereign debts and in its approval an overwhelming majority of countries rejected vulture actions.

It was a world rejection to those usurer groups, said minister of Economy, Axel Kicillof, in statements to daily Pagina 12.

For the minister it is not exaggerated to say that the result obtained at the UN by Argentina in favor of its proposal of norms to restructure sovereign debts was the greatest diplomatic and economic success of the country achieved in many years.

Categories: Economics, International, North America, South America
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