United States Second Circuit

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NML Capital, Ltd. v. Republic of Argentina, 12-105

In a suit to enforce the Republic of Argentina's promise to pay bondholders after its 2001 default on its sovereign debt, judgment in favor of plaintiffs is affirmed in part and remanded in part, where: 1) an equal treatment provision in the bonds bars Argentina from discriminating against plaintiffs' bonds in favor of bonds issued in connection with the restructurings; 2) Argentina violated that provision by ranking its payment obligations on the defaulted debt below its obligations to the holders of its restructured debt; 3) there was no abuse of discretion in fashioning injunctive relief ordering Argentina to make "Ratable Payments" to plaintiffs concurrent with or in advance of its payments to holders of the 2005 and 2010 restructured debt; 4) the injunctions do not violate the Foreign Sovereign Immunities Act (FSIA), but 5) the case is remanded to the district court for such proceedings as are necessary to address the operation of the payment formula and the Injunctions' application to third parties and intermediary banks.

Appellate Information

  • Decided 10/26/2012
  • Published 10/26/2012




  • United States Second Circuit