US appeals court hands Argentina a victory in bond dispute
September 16, 2015
US appeals court hands Argentina a victory in bond dispute
By LARRY NEUMEISTER
Associated Press
NEW YORK —
A federal appeals court handed Argentina a victory Wednesday in its quest to relieve itself of the pressures of debt owed to American hedge funds and others, saying a judge went too far by letting some bondholders demand payment without proving how much they are entitled to be paid.
The 2nd U.S. Circuit Court of Appeals said a lower-court judge was oversimplifying the definition of the class of bond holders affected by his orders.
A ruling written by Circuit Judge Richard Wesley noted that defining a precise class to which Argentina owes damages for refusing to pay bondholders and calculating those damages have been "exasperating tasks." But the decision issued by a three-judge panel said Judge Thomas P. Griesa was making it too easy for some plaintiffs by creating a class including bondholders who were not the original purchasers of the bonds.
"While objective criteria may be necessary to define an ascertainable class, it cannot be the case that any objective criterion will do," Wesley wrote. "A class defined as 'those wearing blue shirts,' while objective, could hardly be called sufficiently definite and readily identifiable; it has no limitation on time or context, and the ever-changing composition of the membership would make determining the identity of those wearing blue shirts impossible."
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http://www.theolympian.com/news/business/article35436102.html#storylink=cpy
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