Sovereign Debt Update

On November 1, 2013, in a summary order without explanation, a three-judge panel of the U.S. Court of Appeals for the Second Circuit refused to lift a stay of execution, pending possible en banc or U.S. Supreme Court review, of its August 23, 2013, ruling upholding a lower court's order directing Argentina to pay holdout bondholders $1.33 billion. On November 18, 2013, the Second Circuit rejected Argentina's request that a larger panel of circuit judges reconsider its August 23 ruling. The court also denied requests by groups holding restructured bonds to reconsider the case.

On October 7, 2013, the Supreme Court denied Argentina's seemingly premature petition for the court to review a nonfinal 2012 ruling by the Second Circuit (NML Capital, Ltd. v. Republic of Argentina, 699 F.3d 246 (2d Cir. 2012)) upholding a lower court's orders barring Argentina from paying holders of...