| WASHINGTON, Sept 11
WASHINGTON, Sept 11 The U.S. Supreme Court will
meet behind closed doors on Sept. 30 to decide whether to hear a
high-profile appeal by Argentina over its battle with hedge
funds that refused to take part in two debt restructurings that
sprang from the country's 2002 default.
Argentina has appealed an October ruling by the 2nd U.S.
Circuit Court of Appeals in New York in which the court said the
government had broken a contractual obligation to treat
In two restructurings, in 2005 and 2010, creditors holding
around 93 percent of Argentina's debt agreed to participate in
debt swaps that gave them 25 cents to 29 cents on the dollar.
But bondholders led by hedge funds NML Capital Ltd, a unit
of Paul Singer's Elliott Management Corp, and Aurelius Capital
Management went to court, seeking payment in full.
If the justices on the nine-member court agree to hear the
case, the court would make an announcement the day after the
private conference. The court would then schedule oral arguments
and the case would be decided sometime before the end of June
If the court decides against hearing it, this would be made
public on Oct. 7, the first day of the court's new term. The
court also has a third option of asking the Obama administration
to weigh in on whether it thinks the case merits the justices'
attention, which would delay any further action.
The legal waters are further muddied by the fact that the
appeals court in New York subsequently issued another ruling on
Aug. 23 in the same dispute. The court upheld a lower court's
order that Argentina pay the bondholders $1.33 billion. The
court stayed its decision pending Supreme Court review.
Argentina also has asked the appeals court to reconsider its
The case now before the Supreme Court is Argentina v. NML