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US Supreme Court Rejects Argentine Appeal Over Defaulted Debt

  • VOA News

Argentine stockbrokers work on the floor of the Buenos Aires Stock Exchange Monday. The U.S. Supreme Court declined to hear Argentina's appeal over its battle with hedge funds that refused to take part in its debt restructurings, June 16, 2014.

Argentine stockbrokers work on the floor of the Buenos Aires Stock Exchange Monday. The U.S. Supreme Court declined to hear Argentina's appeal over its battle with hedge funds that refused to take part in its debt restructurings, June 16, 2014.

The U.S. Supreme Court has dealt Argentina a pair of defeats in its long-running attempt to avoid paying some debts from its 2001 default.

The court Monday let stand a lower court ruling that Argentina cannot make payments on restructured debt unless it also repays investors who refused to accept terms of the refinancing offered by Buenos Aires.

In addition, the court said investors could use the U.S. courts to pursue information about where Argentina owns property around the world. That should make it easier for creditors to collect on court judgments against the South American nation.

Argentina has claimed that if it is forced to make the payments, it will lead to further economic turmoil.

Argentina defaulted on about $100 billion in debt during its financial crisis.

In 2005 and 2010, investors holding more than 90 percent of the debt agreed to write off two-thirds of the value of the government bonds they held.

But some bond holders who are owed $2.5 billion refused to accept the deal and sued Argentina for payment on the securities, leading to Monday's court rulings.
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