Some Lessons for Distressed Debt Participants from the Argentina-NML Dispute

The continuing saga between the Republic of Argentina and a hold out group of investors led by NML Capital, an affiliate of Elliott Management in New York, in relation to sovereign bonds issued by Argentina is a fascinating display of what can happen when a well-funded creditor is dissatisfied with the settlement offered by a distressed debtor. While the outcomes of these related cases may not actually be important as a matter of precedent beyond the sphere of sovereign debt (and may even be fairly limited even in relation to sovereign issues), the recent events made us pause and reflect on some of the more interesting questions we see in the international corporate distressed debt market.