US Supreme Court Failure against Argentina and allows you to seize assets for creditors

The Supreme Court of USA He denied an appeal filed by Argentina and in fact authorized to seize sovereign assets worth about 300 million dollars to pay several of its creditors.

“Request denied,” the court briefly reports on its website.

The plaintiffs in the case in question are seven investment funds that bought Argentine debt in 1994 as part of a restructuring and were affected when the country declared in Default in 2001.

The initial demand rose to more than 420 million dollars but the current failure only affects about 300 million.

The Southern District Court of Manhattan authorized in 2021 the seizure of assets of Argentina in the United States, including American treasure bonds that Buenos Aires used as a guarantee to support a sovereign debt issuance.

“The creditors will soon take possession of 310 million dollars deposited in accounts of the Federal Reserve of New York,” Germany and Switzerland, explains analyst Sebastián Maril, of Latam Advisors, on the social network X.

It was the last resort to Argentinawhich claimed that the assets were protected by international legislation.

“It is Argentina’s second defeat before a Supreme Court in the last 3 months,” says Maril.

The case dates back to the 1990s, when Argentina issued guaranteed bonds as part of a sovereign debt relief plan, known as Plan Brady, instituted by the then Secretary of the United States Treasury, Nicholas F. Brady.

Last October the Supreme Court of the United Kingdom ruled against the country in another similar case.