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ARTICLE · 09 OCTOBER 2014

Sovereign Debt Update - September/October 2014

Jones Day
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On June 30, 2014, Latin America’s third-largest economy failed to make a scheduled $539 million payment to bondholders.

United StatesInsolvency/Bankruptcy/Re-Structuring
Mark Douglas
Mark Douglas
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Argentina—The long-running dispute over the payment of Argentina's sovereign debt has been particularly active in recent weeks and months.

Events Leading Up to Argentina's Default

On June 30, 2014, Latin America's third-largest economy failed to make a scheduled $539 million payment to bondholders after U.S. District Court judge Thomas Griesa ruled that the payment could not be made unless holdout bondholders from restructurings in 2005 and 2010 were also paid. Under the governing documents, Argentina—which has about $200 billion in foreign-currency debt, including $30 billion of restructured ("exchange") bonds—had a 30-day grace period after the June 30 default to make the payment.

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