The National Law Journal

January 23, 2013
By Richard Samp

The Chicken Littles are out in force. The U.S. Court of Appeals for the Second Circuit's ruling in NML v. Argentina has caused an outcry. Some have suggested that the decision will impede efforts to restructure sovereign debt in Europe and elsewhere. Others argue it unfairly violates sovereign immunity, or wrongly implicates third parties to the dispute.

Let's put aside the hyperbole and look at the facts.

Argentina has given U.S. courts and the plaintiffs the runaround for years since defaulting on $81 billion in 2001. As Latin America's third largest economy with significant reserves, the nation has the means to repay its creditors in full. Yet it has staunchly refused. Federal courts have numerous times noted Argentina's "appalling record of keeping its promises to its creditors."

To view the full text of this article, visit Argentina and the courts: The sky will not fall