Argentina beats hedge funds’ lawsuits in New York over nonpayments

Argentina won the dismissal of six lawsuits by Aurelius Capital Management and other hedge funds accusing the South American country of skipping payments on securities linked to how well its economy performs.
In a decision made public on Monday, U.S. District Judge Loretta Preska in Manhattan said the hedge funds had no right to sue because they failed to meet five preconditions required under “no-action” clauses in its bond agreements.
Such clauses are often included in bond agreements to limit litigation, including when individual bondholders want to pursue claims without support from other bondholders.
Lawyers for Aurelius hedge funds did not immediately respond to requests for comment.
The lawsuits related to securities issued through sovereign debt restructurings in 2005 and 2010, which followed Argentina’s approximately $100 billion debt default in 2001.