2nd Circ. Blocks Argentina From $100M Bond Exchange

Law360, New York (July 20, 2011, 9:18 PM EDT) -- The Second Circuit on Wednesday scuttled Argentina’s plan to exchange $100 million of bonds, backing Capital Ventures International’s right to block the country from receiving the collateral for the bonds in order to pay bondholders.

The appeals court reversed the district court's decision, finding that Argentina could not modify CVI’s attachment on Argentina’s reversionary interest in the bond collateral to allow for the exchange of the so-called Brady bonds, effectively requiring the bondholders to wait until 2023 to receive any payment.

“It is unfortunate, from [the...
To view the full article, register now.