The US Circuit Court of Appeals for the Second Circuit [official website] denied [order, PDF] creditors seeking to keep in place court-ordered protections following Argentina’s 2001 default of $100 billion in bonds. Investors who had paid full price for their bonds urged [AP report] the court to leave the order in place, as they were reluctant to receive a reduced percentage payout. Judge Christopher Droney [official profile] said the court should determine whether Argentina has met the required conditions before lifting the court order permanently. Since January, Argentina has reached agreements to pay more than eight billion dollars to its creditors. The judge expressed his desire to clear the protective orders in order to allow Argentina to strengthen its ability to maneuver in worldwide markets.

Litigation related to Argentina’s 2001 debt default has continued for years. Last September the Second Circuit ruled that a lower court judge should not have expanded a class action suit [JURIST report] of bondholders suing Argentina. District Judge Thomas Griesa had been overseeing litigation related to Argentina’s sovereign debt default for roughly 14 years. The appeals court noted it was the fourth time it had reviewed and subsequently rejected Griesa’s method for calculating damages. Last April the Second Circuit dismissed [JURIST report] the Argentine government’s appeal of a contempt charge in an ongoing dispute over Argentina’s bond default. In September 2014 Argentina signed into law a bill to continue making payments on foreign-held bonds outside of US jurisdiction, circumventing the US court ruling [JURIST reports] that prohibits Argentina from paying its bondholders until the dispute is resolved. In August 2014 Argentina initiated legal proceedings [JURIST report] against the US in the International Court of Justice [official website] over US interference in the restructuring of Argentina’s foreign debt.