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last mo.

U.S. Appeals Court Denies Rehearing, Preserving Argentina Win in PBI Coupon Dispute

The denial spares Argentina an estimated $500 million payment by upholding a finding that investors failed the bonds’ No Action prerequisite.

La justicia de EEUU aceptó el pedido argentino de apelación frente a otra causa mllonaria.
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Justicia Nueva York Estados Unidos

Overview

  • The Second Circuit in New York rejected an Aurelius-led bid to rehear the case, leaving intact its July 16 affirmance of Judge Loretta Preska’s July 2024 decision.
  • Preska’s ruling turned on investors’ noncompliance with the contracts’ No Action clause, and the appellate court likewise did not address allegations of INDEC data manipulation.
  • Argentina’s Treasury Solicitor celebrated the result as a legal victory that averts a near-term payout of roughly $500 million.
  • Analysts say creditors may attempt to refile correcting the procedural flaw, while two larger U.S. cases tied to the same instrument—reported at about $6 billion and $1.5 billion—remain pending.
  • The broader dispute dates to PBI-linked securities issued in the 2005 debt swap and a 2013–2014 GDP base-year change, with a separate 2023 London judgment already producing a partial recovery in euros.