For the most part, as we’ve reported, Argentina has managed to beat back the onslaught of bondholders that have clogged the Manhattan federal district court docket of Judge Thomas Griesa, hoping to recover losses stemming from the country’s $100 billion 2002 default. Vulture funds and other creditors that’ve won judgments against Argentina have fought for years to seize the country’s assets in the U.S., but Argentina’s lawyers at Cleary, Gottlieb, Steen & Hamilton have repeatedly blocked those efforts.
Last week Capital Ventures International and its lawyers at Ballard Spahr and Cozen O’Connor managed to preserve a rare bondholder victory from 2006 — though it represents a drop in the bucket of Argentina’s total bondholder liability. The 2nd U.S. Circuit Court of Appeals reversed a 2010 order by Griesa and upheld CVI attachments on collateral underlying $100 million in so-called Brady bonds that Argentina wanted to use to pay off a group of its creditors. (The July 20 2nd Circuit ruling is here.)
