Breaking News

Argentina Blaming Cleary Gottlieb for Defaulting on Bonds
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

argentina-peso-peron-2012

Summary: The country of Argentina is blaming the law firm of Cleary Gottlieb for the default on its bonds from last month, the second default for the country in 13 years. 

Last month, Argentina defaulted for the second time in 13 years. Many international banks and local institutions have attempted to end the default since then, but to no avail, according to The Guardian.

  
What
Where


President Cristina Fernandez de Kirchner and finance minister Axel Kicillof are now battling with Elliott Associates over the default.

Argentina followed the advice laid out by a memo written on May 2 by its law firm, Cleary Gottlieb. Hedge funds from the U.S., including Elliott Capital Management, are looking for repayment of the country’s bonds on original terms.

The issue was taken to U.S. court, where judge Thomas Griesa ordered the country to pay the holdouts.

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!!




Cleary Gottlieb advised Argentina on May 2 to intentionally default on the bonds so a renegotiations could be forced and the case could be moved out of U.S. judge’s hands.

If Argentina were to fire Cleary Gottlieb it could then ask Judge Griesa for a stay in his ruling.



Argentina has said that it cannot pay the holdouts because of a clause in the 2005 and 2010 negotiations. The clause says that the country must pay all of its bondholders an equal amount of money. This is the Right on Future Offers, or Rufo clause. Argentina claims that if it follows the clause and makes the payments, it could cost the country some $120 billion.



 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Insurance Defense Trial Attorney/ Senior Counsel

USA-CA-San Francisco

Job description Trial Attorney - Personal Injury Defense Full Job Description Hickey Smith ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

SEARCH IN ARCHIVE

To Top