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Sovereign Defaulters Can Always Count On France

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American and the IMF have abandoned Argentina in her holy war to avoid paying her bills. But the French remain steadfast, and will undoubtedly tip John Roberts' scales in favor of the Argentine government.

The French government is supporting Argentina's U.S. Supreme Court appeal in a closely watched case involving hedge funds that are trying to collect on the South American country's defaulted debt, Argentina's state-run news agency Telam reported Friday.

"France submitted an 'amicus' brief to the court in favor of Argentina's June 24 petition before the Supreme Court," said Telam, citing unnamed legal sources involved in the case.

Spokespeople for the French government and Argentina's Economy Ministry didn't respond to requests for comment….

Argentina is asking the Supreme Court to review the Second U.S. Circuit Court of Appeals' ruling last October that ordered the South American country to pay more than $1.3 billion to hedge funds that are suing for full repayment on defaulted bonds.

Hedge funds led by Elliott Management LLC's NML Capital and Aurelius Capital--dubbed "holdouts" for their refusal to accept new bonds issued by Argentina in heavily discounted 2005 and 2010 debt exchanges--have tried to seize Argentine government assets around the globe as payment for their U.S. court awards.

France Banks Argentina in Debt Case at Supreme Court [Dow Jones via WSJ]


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