The Financial Times turned to Terry legal studies professor Tim Samples to help explain the aftermath of NML v Argentina, a U.S. court ruling that has put a number of Argentine bonds in technical default and could leave investors unpaid.
A group of investors has challenged the reach of a U.S. District Court ruling, claiming that payment on euro-denominated bonds under U.K. law should remain outside the court’s jurisdiction. The group is seeking clarification as negotiations between Argentina and holdout creditors continue.
“This court is now struggling to reconcile practical and jurisdictional complexities with the broad remedies that [U.S. Judge] Griesa crafted to corner Argentina,” Samples said. “One problem with casting such a large net is you can end up catching some fish that you weren’t really fishing for.”
The full article is available online.