Argentina, US hedge funds in court over bond debt

NEW YORK—Lawyers for Argentina and a group of US hedge funds are in federal court in New York amid a high-stakes showdown over an order for Argentina to pay the funds US$1.5 billion for defaulted bonds. The hearing comes two days after the US Supreme Court refused to intervene in the order. It would deny Argentina use of the US financial system to pay other bondholders unless it first pays the plaintiffs. 

The Argentine government has indicated it plans to sidestep the order. Economy Minister Axel Kicillof said that the government is “starting to take steps to begin a debt swap” to service the country’s restructured debt in “Argentina and under Argentine law.” The dispute stems from Argentina’s record US$100 billion default on its national debt in 2001.

AP