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Thomas E. L. Dewey Thomas E. L. Dewey

 In another entry in the long-running series of cases surrounding the Republic of Argentina’s 2001 default on certain bonds, five bondholders sought to enforce settlement agreements with the Republic even though it was undisputed that the Republic never countersigned those agreements. Attestor Value Master Fund v. Republic of Argentina, 940 F.3d 825 (2d Cir. Oct. 18, 2019). The court found the Republic was not bound, over a sharply worded dissent by Judge Ralph Winter.

Background

The Republic issued bonds pursuant to a 1994 Fiscal Agency Agreement, and during a financial crisis in 2001 defaulted on those bonds, which “spawned extensive litigation.” Id. at 827-28 (citing cases). In 2012—relying on a “pari passu” clause in the 1994 agreement that debt held under those bonds would “rank at least equally” with certain bonds issued by the Republic in the future—the district court issued injunctions prohibiting the Republic from making payments on certain other bonds unless payments were also made on the defaulted bonds.

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