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 The appeal followed a November 18 decision by the 2nd U.S. Circuit
Court of Appeals in New York denying Argentina's petition for a
rehearing in a decade-long legal battle with bondholders who refused
to accept the country's two debt-restructuring offers after the
country defaulted on $100 billion in 2002.
The litigation has heightened investor concerns about a potential
debt crisis in South America's second-largest economy, which is
reeling from a 17 percent currency devaluation last month that sent
shudders through global markets.
The Argentine government said through its embassy in Washington the
lower court orders "threaten the well-being of Argentina and its
citizens, as well as of the countless holders of performing
Argentine debt, many of whom are U.S. institutional investors and
individuals."
Argentina is seeking to reverse the rulings that say the country
must make full payment to the "holdout" creditors led by hedge funds
Aurelius Capital Management and NML Capital Ltd, a unit of
billionaire Paul Singer's Elliott Management Corp.
Argentina argues the funds bought the debt at a deep discount after
the default and sought to thwart the country's efforts to
restructure its debt in which it paid its creditors less than full
value of the bonds.
Creditors holding about 93 percent of Argentina's bonds agreed to
participate in the two debt swaps in 2005 and 2010, accepting
between 25 and 29 cents on the dollar.
The case is being closely watched because of its potential impact on
future sovereign debt restructurings.
"Argentina's arguments for prolonging this dispute are without merit
and entirely unnecessary," Jay Newman, a senior portfolio manager at
Elliott, said in a statement. "As we have stated many times, if
Argentina were willing to talk to its creditors, this dispute could
be resolved quickly."
In their rulings, the lower courts said Argentina must pay the
bondholders who refused to participate in the debt restructuring
along with those who did.
SOVEREIGN IMMUNITY
Lawyers for Argentina argue the rulings violate sovereign immunity
granted under U.S. federal law by dictating to a country who they
should make payments to.
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Argentine President Cristina Fernandez has said her government will
continue to pay creditors holding the country's restructured debt,
but will never pay the holdout bondholders whom she has called
"vultures."
Argentina's continued refusal to pay could result in U.S. courts
enforcing injunctions blocking payment overseas to bondholders who
participated in prior restructurings, possibly causing a new
default.
In its appeal to the Supreme Court, Argentina suggested the high
court ask the New York Court of Appeals to weigh in on a question of
how to interpret state law, based on the fact that the bonds were
issued under New York law.
If the Supreme Court were to seek the New York court's opinion, that
additional legal procedure would delay the justices' consideration
of whether to take the case.
If the justices agree to hear the case, a decision could come
between October, when the next Supreme Court term begins, and June
2015, the end of the term.
In November 2012, U.S. District Judge Thomas Griesa ordered
Argentina to pay the $1.33 billion into a court-controlled escrow
account.
A three-judge panel of the 2nd Circuit upheld Griesa's order in
August, but put it on hold pending an appeal to the Supreme Court.
If the high court declines to hear the case, the appeals court
ruling would be left intact.
(Additional reporting by Alejandro
Lifschitz in Buenos Aires; editing by Howard Goller, Amanda Kwan
and Mohammad Zargham)
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