US court rejects Argentine appeal related to long-standing debt fight with holdout creditors

BUENOS AIRES, Argentina – A U.S. appeals court in New York has thrown out an appeal by the Argentine government in the long-running legal fight over the South American country’s debt.

The 2nd U.S. Circuit Court of Appeals in New York on Tuesday dismissed the appeal of a contempt ruling by Judge Thomas Griesa. According to the court, the appeal was premature because Griesa has yet to issue final orders on the matter.

It’s the latest development in a long legal fight between Argentina and a group of U.S. creditors that refused to accept debt swaps in 2005 and 2010.

Griesa has ruled that Argentina can’t pay holders of its restructured debt without also paying the holdout funds and that the country is in contempt for continuing to make payments on the restructured debt.