US Supreme Court to hear Argentina case

Argentina's flag Argentina has been fighting the two hedge funds for more than 11 years

Related Stories

The US Supreme Court has agreed to rule on whether Argentina's assets are protected from hedge funds seeking to be paid back.

The long-running legal saga started after Argentina's record debt default more than 11 years ago.

The country objected to a lower court ruling that gave creditors the power to pursue its non-US assets.

Argentina's petition to the highest US court also has the support of the US government.

In 2002, Argentina defaulted on some $100bn (worth £60.7bn in 2014) of debts and has since restructured its debt twice, cancelling around 75% of the nominal value of the bonds.

About 92% of the country's bondholders agreed to write off most of the amount owed to them.

But hedge funds NML Capital and Aurelius are demanding 100% repayment of the $1.3bn, plus interest.

Argentina refuses to pay anything to investors who declined to participate in a previous debt reduction deals involving most of the nation's lenders.

The investors were so determined to get their money that they went to court to have an Argentine ship, the Libertad, impounded in Ghana last year. After several weeks, the ship returned home.

Foreign property

Numerous US courts have said that Argentina must pay back the money - most recently in August 2013.

But the appeals court held off forcing Argentina to pay, pending an appeal to the Supreme Court, which is considered unlikely to hear the full case.

In this instance, the Supreme Court will decide whether the US Foreign Sovereign Immunities Act (FSIA) protects Argentina's property from being seized.

The US Justice Department is taking the side of Argentina in this case. It urged the top court to hear the case and strike it down, arguing that the FSIA protects foreign governments' property "unless the property is used for a commercial activity in the United States".

More on This Story

Related Stories

More Business stories

RSS

BBC Business Live

  1.  
    RETAIL SALES 09:39:

    British retail sales grew in July at a slower pace than forecast, according to data from the Office for National Statistics. Retail sales volumes rose 0.1% in July compared to June and 2.6% growth was seen year-on-year.

     
  2.  
    PUBLIC SECTOR FINANCES Breaking News

    Public sector net borrowing for April to July was £32.4bn compared with £23bn for the same period a year earlier, official figures show.

     
  3.  
    AIR BERLIN PROFIT 09:26:

    Air Berlin, Germany's second-biggest airline, said it returned to profit in the second quarter, up 8.6m euros compared with a loss of 38m euros a year before. It also promised a restructuring programme later this year, which it will describe in September.

     
  4.  
    CHINA MANUFACTURING 09:07:
    Workers in a manufacturing plant in Chengdu

    China's manufacturing growth slowed last month, indicating a recovery in the world's second-largest economy has yet to fully take hold, HSBC said. The Purchasing Managers' Index fell to 50.3 in August from July's 18-month high of 51.7.

     
  5.  
    GIVE PEACE A CHANCE 08:53: World Service

    On the BBC World Service's Newsday, reporter Tony Bonsignore has just interviewed Sir Richard Branson, who along with 15 other global business leaders has written an open letter to governments urging them to find a peaceful solution to the conflict in Ukraine. The conflict has led to bans on everything from French pears to German sausages in Russia in response to Western sanctions. Branson said people in Russia, Ukraine and the West are "incredibly sad that after the fall of the Berlin Wall, when so much hope was taking place, we seemed to be reverting to a cold war situation".

     
  6.  
    MARKET UPDATE 08:38:

    European markets are flat as investors await economic data due out later this morning. They are looking for indicators as to the health of the eurozone with many wondering how much longer it will be before the European Central Bank is pushed into launching quantitative easing. The biggest rise on the FTSE 100 so far today is Schroders which is up 0.86% to 2,350.00p.

     
  7.  
    JACKSON HOLE 08:23: BBC Radio 4

    More from Pippa Malmgrem. She says central banks want to argue over inflation. In the developed world, there isn't enough of it and in emerging markets there's too much. So the debate, she says, will be about whether "we keep our foot on the gas pedal with all the free money or should we start to take it away?" She suggests the data is behind what is really going on in western economies, particularly on wage rises and that inflation is already a problem for emerging markets.

     
  8.  
  9.  
    MOTORING ON 08:07:
    Nissan working on the Qashqai

    Almost 8 out of 10 cars built in the UK is exported to another part of the world - who said we don't export anything these days? That's according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). It adds 5m cars have been made and shipped out of the UK since 2010, which is the best performance of any decade.

     
  10.  
    CHARITY GIVING 07:53: Radio 5 live

    "People aren't motivated by the tax element," of giving to charity, says Anne-Marie Huby of JustGiving. Charities qualify for a number of tax exemptions and reliefs on income and capital gains, and on profits for some activities.

     
  11.  
    CHARITY GIVING 07:40: Radio 5 live

    Anne-Marie Huby, co-founder of charity donation company JustGiving, is on Wake Up to Money talking about which is the most generous town in Britain. It's Bedford. She's not sure which is the tightest, though.

     
  12.  
    SAGE OF OMAHA FINED 07:26:
    Warren Buffett

    Proof that we are all human comes from the FT this morning, which reports that Warren Buffett's Berkshire Hathaway has been fined nearly $1m (£603,319) by the US Department of Justice for allegedly breaching reporting requirements when building a stake in a construction supplies company. In fairness, it's basically pocket change to a man like Buffett.

     
  13.  
    WH SMITH 07:11:
    A man walks past a WH Smith store

    WH Smith said its high street business delivered a "good performance" for the year to the end of August. It publishes full results on 16 October. It expects earnings to meet analyst forecasts.

     
  14.  
    JACKSON HOLE 07:00: BBC Radio 4

    It's that time of year when central bank policymakers come to together to discuss interest rates, inflation general world economic matters - otherwise known as Jackson Hole. Pippa Malmgrem a former advisor to President Bush on all things economic tells Today this year's meeting could be more interesting than previous years because the private sector - the banks which have been the main beneficiaries of monetary policy in recent years - have been uninvited. That, she says, is because the central banks want to have an argument and want to do it behind closed doors.

     
  15.  
    BANK OF AMERICA FINE 06:45: BBC Radio 4

    Colin McLean of SVM Asset Management tells the Today programme that an expected fine for US bank, Bank of America, will be paid half in cash and half in customer redress. There have been rumours for days that the matter with US regulators is about to be settled, he says. We're awaiting the official announcement today. The fine is expected to be the biggest in corporate history but McLean says: "Nobody wants to put the banks out of business. They really want to draw a line under this, so this does that and will let them move forward."

     
  16.  
    INTEREST RATES 06:29: Radio 5 live

    "It's normal for there to be a slight difference of view," economist Marian Bell, a former Monetary Policy Committee member tells Wake Up to Money following yesterday's minutes on the interest rate decision. Two people wanted to hike the rate from its record low. "I agree wage growth is muted... it's not an argument for not moving interest rates to a more normal setting." She'd increase it by one eighth of a percentage point.

     
  17.  
    BALFOUR MERGER 06:17: Radio 5 live

    Colin McLean of SVM Asset Management is on Wake Up to Money talking about building firms Carillion and Balfour Beatty's will-they-won't-they merger talks. Balfour rejected another offer yesterday. "It may not be the end of it," he says. "It just depends the way people are approached... These things don't ever die".

     
  18.  
    CELEBRITY ENDORSEMENTS 06:05: Radio 5 live

    Andy Milligan, a brand consultant, is on 5 live. How come some celebrity endorsements do well and some fail? "When it goes wrong there's a problem with credibility," he says. "In some cases we've never heard of them." George Foreman and his grill worked well because boxers want to eat healthy protein, he says.

     
  19.  
    06:01: Howard Mustoe Business reporter

    Morning! Get in touch with us via email: bizlivepage@bbc.co.uk or on twitter @BBCBusiness.

     
  20.  
    06:00: Matthew West Business Reporter

    Morning folks. So what's new? Well, the Labour party is pledging this morning to give the energy regulator greater powers, while the US Federal Reserve has warned there is more slack in the labour market than first thought. We have public borrowing figures out later, while interest rates are still being discussed following the release of the Bank of England minutes yesterday. Stay with us - there'll be more.

     

Features

  • Pro Israel activists hold a banner reading 'Against Anti-Semitism and hate of Israel' at a demonstration as part of Quds Day in Berlin, Germany, 25 July 2014'Rising tide'

    Do statistics support claims that anti-Semitism is increasing?


  • Police respond to a shooting in Santa MonicaTrigger decision

    What really happens before a police officer fires his gun?


  • Child injured by what activists say were two air strikes in the north-eastern Damascus suburb of Douma (3 August 2014)'No-one cares'

    Hope fades for Syrians one year after chemical attack


  •  Marina Silva speaks during a press conference in Brasilia on 4 October, 2013. Humble origins

    Marina Silva - from rubber tapper to Brazilian presidential candidate


From BBC Capital

Programmes

  • Traffic lightsClick Watch

    From hacking cars to traffic lights - behind the scenes at a cyber-security conference

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.