High court won't hear Argentina appeal over bonds

AP News
Posted: Oct 07, 2013 9:35 AM

WASHINGTON (AP) — The Supreme Court has turned away Argentina's first appeal of a lower court ruling ordering it to pay hedge funds that bought up some of the country's unpaid debt from its default in 2001.

But Argentina retains other legal options, including a second appeal pending in federal court in New York

The justices did not comment on their order Monday.

The case stems from Argentina's financial crisis a dozen years ago, when the government defaulted on $100 billion in debts, and some investors scooped up nearly worthless Argentine bonds.

The country eventually offered creditors new bonds that initially paid less than 30 cents for each dollar of bad debt. More than 90 percent of bondholders agreed; the rest sued and won their case in the lower courts.