Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Sometimes the litigation over the Republic of Argentina’s obligations to hedge funds that bought up the country’s defaulted bonds reminds us of the America’s Cup tempest we’ve chronicled so faithfully over the last year. For one thing, Barry Ostrager of Simpson Thacher & Bartlett is at the center of both cases, representing Aurelius Capital Partners against Argentina and the yacht club of billionaire Swiss sailor Ernesto Bertarelli in the America’s Cup death match with Larry Ellison’s Golden Gate Yacht Club. And for another, both of these cases have involved more incremental plot twists than an episode of “Guiding Light.” In the latest development in the Argentina litigation, Manhattan Federal District Court Judge Thomas Griesa entered a Nov. 19 preliminary injunction barring Argentina from selling or transferring trust bonds held in a securities account in the U.S. According to Ostrager, there are about $2 billion worth of these complex financial instruments — more than enough to satisfy the hedge funds’ $553 million in judgments against Argentina if Judge Griesa ultimately decides that the hedge funds can execute on the securities. “This could be a home run,” Ostrager told the Litigation Daily. He needs one. As we reported last month, the 2nd U.S. Circuit Court of Appeals ruled in a companion case that the hedge funds could not execute against recently nationalized Argentine pension fund assets held in the U.S. The 2nd Circuit also heard an appeal in the trust bonds case, in which the Republic of Argentina asked the appellate court to vacate Judge Griesa’s temporary restraining order. Instead, on Nov. 5, the 2nd Circuit remanded the case to Griesa with the instruction that he either enter a preliminary injunction or vacate the TRO. The Nov. 19 injunction was Griesa’s response to the remand. Argentina is represented in both the trust bonds and pension fund cases by former Litigator of the Week Jonathan Blackman of Cleary, Gottlieb, Steen & Hamilton. He didn’t return a call for comment. We’d be remiss if we didn’t mention that a global resolution may be coming to the Argentine default mess. Bloomberg reported Thursday that the Republic’s senate has approved a bill that permits the government to make a settlement offer to bondholders. Hey, even soap operas end sometimes.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.