The Supreme Court this month will announce whether it will hear an appeal from Argentina, which is seeking to have overturned a court judgment to repay $1.47 billion to two hedge funds.
The high court announced on its website that it is considering taking the case involving the two funds, NML Capital and Aurelius, and would announce its decision on September 30.
On August 23, a US appeals court ordered Argentina to repay the two hedge funds holding its defaulted bonds, quashing an appeal by Buenos Aires against the initial 2012 judgment.
The court endorsed the original decision that Argentina must repay 100 percent of the value of defaulted Argentine government bonds to the hedge funds, even though the two declined to take part in a restructuring of the debt.
Moreover, the remuneration is to be to be made in parallel with any payments made to holders of the restructured bonds, which are governed by New York laws under the bond contracts.
Argentina has argued however that would not be fair to the restructured bondholders, who took huge losses in the 2005 and 2010 restructurings of nearly $100 billion of defaulted debt.
In addition, Buenos Aires said, being forced to pay 100 percent of the hedge fund-owned debt would strain its finances.
US high court mulls taking up Argentina bonds case
