Hedge Funds Urge Judge Preska to Hold Argentina in Contempt

In a recent development, hedge funds are urging Judge Preska to hold Argentina in contempt. This stems from allegations surrounding the country’s failure to comply with a court order requiring the submission of communication records from specific public officials.

Background on Compliance Issues

Reports indicate that most officials have provided the requested communications. However, as of January 12, six officials have yet to submit their records. Argentine legal expert Sebastián Maril pointed out these compliance concerns.

The Argentine Treasury has maintained that the country is adhering to judicial decisions. They noted that partial and periodic information releases are ongoing and that efforts are being made to secure consent from both current and former officials.

Responses from the Argentine Government

• The Argentine government asserts compliance with judicial orders.
• Many officials have cooperated voluntarily in releasing information.
• Partial data submissions are currently in progress.

Criticism of Hedge Funds and the Legal Process

The situation has drawn sharp criticism toward hedge funds, particularly Burford Capital, a UK-based litigation finance firm. Argentine lawyers have accused these funds of using U.S. courts for financial gain from a domestic issue. They argue that the case should have been addressed under Argentine jurisdiction.

• Burford Capital stands accused of pursuing extraordinary profits amounting to USD 18 billion.
• They initially acquired claims for just 15 million euros, seeking over 37,000% in profits.

Challenging Verdicts

Legal representatives from Argentina have criticized Judge Preska, remarking that no Argentine court would have reached the conclusions outlined in her ruling. This situation highlights the ongoing tensions between the Argentine government and international hedge funds.

As the case evolves, the focus on compliance and the legal standings may have significant implications for Argentina’s international relations and financial landscape.