Legal News

Second Circuit Court of Appeals Rules Investors Can Have Access to Argentine Bank Documents
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Monday, a three-judge panel of the 2nd U.S. Circuit Court of Appeals in New York said in an opinion that the Argentina government cannot prevent the order of a lower court compelling two banks from disclosing to bondholders, the details of Argentina’s assets outside the United States. The instant case stems from $ 100 billion defaulted by Argentina in 2002. The results of the case could set precedents on the ability of countries to fend off creditors in sovereign debt crises.

The written opinion of the appellate court observed, “Because the district court ordered only discovery, not the attachment of sovereign property, and because that discovery is directed at third-party banks, Argentina’s sovereign immunity is not affected.”

Following its huge default in 2002, Argentina has been involved in multiple litigations with hedge funds and other creditors in U.S., and has been prevented from returning to global credit markets.

  
What
Where


In the instant case, Argentina had challenged subpoenas served upon the Bank of America and Banco  de la Nacion Argentina, seeking documents related to accounts and assets of Argentina in those two banks. Argentina argued the assets were protected by the Foreign Sovereign Immunities Act of 1976 and the subpoenas were invalid.

The appellate court also observed, “Argentina maintains that its property abroad is categorically immune from attachment, and that the district court cannot order discovery into those assets” but held that a U.S. judge’s order to learn of the assets does not tantamount to attachment, and hence the subpoenas did not attract the Foreign Sovereign Immunities Act.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Probate Paralegal / Assistant

USA-FL-Bokeelia

Waggoner & Bruehl, PA, a small Law Firm in Pine Island, Florida, is seeking a Probate and Trust Admi...

Apply now

EXPERIENCED PARALEGAL PROFESSIONAL

USA-CA-Costa Mesa

Prominent AV Rated Orange County business bankruptcy and commercial litigation law firm boutique see...

Apply now

Litigation Mid-Level Associate Attorney

USA-CO-Denver

Hoban Law Group is currently seeking an exceptional mid-to-senior litigation attorney with multi-fac...

Apply now

Real Estate Paralegal - Immediate Opening

USA-NY-Sheepshead Bay

$35,000 to $60,000 Annually Benefits Offered Medical Employment Type Full-Time Why Wo...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Corporate/Transactional Attorney

USA-IA-Des Moines

Des Moines office of a BCG Attorney Search Top Ranked Law Firm seeks corporate/transactional attorne...

Apply Now

Corporate Attorney / Counsel

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks corporate attorney with 5+ y...

Apply Now

Housing Finance Associate Attorney

USA-MN-Minneapolis

Minneapolis office of a BCG Attorney Search Top Ranked Law Firm seeks a housing finance associate at...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top