The high court’s decision, handed down Monday, upholds a 2012 ruling by a lower court obliging the South American republic to pay all its bondholders at once—including those that have refused offers to renegotiate the value of their holdings and instead brought suit seeking repayment.Creditors who sued the nation, including two large hedge funds, hailed the decision as a victory. But Argentina is expected to file an appeal to the Supreme Court on a separate ruling in the same case, which would further delay a final resolution.
Argentina is determined to shirk the $1.4 billion it owes the plaintiffs (its creditors) and to avoid its second default in a dozen years. The government, no stranger to doing end runs around the rule of law at home, is sure to get creative in its legal tussles abroad. President Cristinia Fernandez de Kirchner, who is undergoing major brain injury (from which we hope she recovers), has already promised to open a new bond exchange in Buenos Aires to dodge the reach of American courts if it loses all its legal fights there.Argentina’s spin cycle of failure continues.[Argentinian flag courtesy of Shutterstock]