Weekly Report - 27 March 2013 (WR-13-12)

“The petition is denied”. With little explanation or fanfare the 2nd US Circuit Court of Appeals rejected one of Argentina’s last remaining options to avoid paying its holdout bondholders in full. Argentina had sought to overturn a ruling that prevented it from treating restructured-debt holders more favourably than bondholders who demand the original value of the country’s debt. The decision now leaves Argentina with just one appeal outstanding before the court: it has a 29 March deadline to spell out the “precise terms” of the offer it would make to holdout creditors.