NY. Argentina won the dismissal of six lawsuits filed by Aurelius Capital Management and other hedge funds that accused the South American country of skipping payments on securities linked to the performance of its economy.
In a decision made public Monday, U.S. District Judge in Manhattan Loretta Preska said the funds had no standing to sue because they failed to meet five preconditions required under “no-action” clauses in their bond agreements.
These types of clauses are often included in bond contracts to limit litigation, even when individual bondholders want to bring claims without the support of other bondholders.
Lawyers for Aurelius did not immediately respond to requests for comment.
Meanwhile, an Argentine government source who asked that his identity be preserved told Reuters that the government “is satisfied with the Court’s decision” and that the country “will continue to exercise its right to defend itself against lawsuits that in its opinion are unfounded.” ”.
The lawsuits related to securities issued through sovereign debt restructurings in 2005 and 2010, which followed Argentina’s debt default of approximately $100 billion in 2001.
The hedge funds claimed they were entitled to additional payments when Argentina’s gross domestic product (GDP) had increased by at least 3 percent, and that they were entitled to a payment for 2013.
According to court documents, Argentina changed its methodology for calculating GDP in 2014 and concluded that no payment was due for the previous year.
The Aurelius case is Aurelius Capital Master Ltd v. Argentina, United States District Court, Southern District of New York, No. 19-00351.
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– 2024-04-08 14:35:12
