Investors, led by billionaire Paul Singer’s NML Capital Ltd., ask the Supreme Court to find Argentina liable for $1.3 billion in debt at 92 percent interest and force the South American country to pay. Argentina claims an adverse ruling would provoke catastrophic default and President Cristina Fernandez vows not to honor the decision if it goes against her. NML’s brief says:
Argentina ultimately is not interested in any court’s views concerning those questions. By Argentina’s lights, it has the final word, and it will recognize a judicial ruling only if it accords with Argentina’s conclusions.”
Hedge funds and holding companies cite the 114 court rulings and 30 World Bank settlement orders the country refuses to pay in support of NML’s claim and urge justices to recognize the country’s chronic mistreatment of private-sector creditors.