As previously mentioned, the Supreme Court is hearing arguments on the defaulted debt case, Republic of Argentina v. NML Capital. NML is trying to collect $1.6 billion in judgments it has won in U.S. court cases against Argentina.
The justices were skeptical:
Argentina got a skeptical reception at the U.S. Supreme Court as the justices considered whether two banks must turn over details about the country’s assets as part of a multibillion-dollar fight over defaulted government bonds.
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The bondholders’ attorney, Theodore Olson, told the justices that Argentina, when it issued the bonds, agreed to submit to the jurisdiction of U.S. courts. Had it not done so, “it never would have been able to borrow any money in the United States,” Olson said.
However, there’s The problem when a pitfall opens
The Supreme Court spent most of a half-hour on Monday staying entirely away from a pitfall in the law that governs debt collection, but then that trap suddenly opened widely, and nearly swallowed the case of Republic of Argentina v. NML Capital Ltd. What made the difference? The Court began worrying a lot about the identity of the debtor — the sovereign nation of Argentina.
To a remarkable extent, this was an argument in which the front half and the second half did not seem to be on the same page. In the end, though, it appeared that the second part might well turn out to be controlling, and Argentina could get some special treatment as a debtor — because it is a nation, not an ordinary debtor.
Read the rest of Lyle Denniston’s post here.