US Supreme Court rejects Argentina appeal in bond fight

The US Supreme Court today declined to hear Argentina's appeal over its bid to avoid paying $1.33 billion to hedge fund creditors or risk a potential default.

Without comment, the high court left intact lower court rulings that ordered Argentina to pay. The government had previously warned it could default on its sovereign debt if required to pay in full.

Argentina said in its most recent court filing that the government would struggle to pay the bondholders in full while also serving its restructured debt. In that scenario, "Argentina will have to face, objectively, a serious and imminent risk of default," the filing said.

The bondholders dispute that assessment, saying in their own court filing there was evidence presented in lower courts that Argentina could afford to pay.

Argentina is seeking to avoid making full payment to holdout creditors led by hedge funds Aurelius Capital Management and NML Capital Ltd, a unit of billionaire Paul Singer's Elliott Management Corp.


http://buenosairesherald.com/article/162237/us-supreme-court-rejects-argentina-appeal-in-bond-fight