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ARTICLE · 02 APRIL 2014

Sovereign Debt Update

Jones Day
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On February 18, 2014, the Republic of Argentina filed a petition with the U.S. Supreme Court.

United StatesInsolvency/Bankruptcy/Re-Structuring
Jones Day
Jones Day
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On February 18, 2014, the Republic of Argentina filed a petition with the U.S. Supreme Court (available at http://blogs.reuters.com/alison-frankel/files/2014/02/argentina-paripassucertpetition.pdf) seeking review of a pair of lower-court rulings that, among other things, construed pari passu, or equal footing, clauses of a bond indenture to prohibit Argentina from making payments to bondholders who participated in 2005 and 2010 debt restructurings before it pays $1.3 billion to distressed debt investors who refused to exchange their defaulted bonds.

In NML Capital, Ltd. v. Republic of Argentina, 699 F.3d 246 (2d Cir. 2012), the U.S. Court of Appeals for the Second Circuit upheld a lower court's orders barring Argentina from paying holders of restructured debt without also paying holdout bondholders in full. On October 7, 2013, the Supreme Court denied Argentina's petition for the court to review the nonfinal ruling.

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