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Argentina: Will the country again face international arbitration claims 
under Investment Protection Treaties from bondholders -under advise of lawfirm White & Case- for debt restructuring? Everything seems to indicate that history could repeat itself. Follow the thread!
under Investment Protection Treaties from bondholders -under advise of lawfirm White & Case- for debt restructuring? Everything seems to indicate that history could repeat itself. Follow the thread!
In 2007, 60,000 bondholders who refused Argentina's 2001 debt restructuring, sued the country, represented by White&Case, at the World Bank's arbitration center #ICSID. In 2016, the State settled the Abaclat case when it paid US$1.35 billion to the creditors.
Sovereign bonds issued by the State are considered protected investments under investment protection treaties. This was the conclusion of the majority of arbitrators in the Abaclat case: https://italaw.com/sites/default/files/case-documents/italaw4086.pdf
Argentina has almost 50 #BITs in force, including with the USA.
Argentina has almost 50 #BITs in force, including with the USA.
Today, Argentina is again negotiating the restructuring of US$66 billion of public debt with international bondholders, including 
BlackRock - the world's largest investment fund. The possibility of new arbitration claims by vulture fund against Argentina got opened.
BlackRock - the world's largest investment fund. The possibility of new arbitration claims by vulture fund against Argentina got opened.
The same White&Case of Abaclat case, is the lawfirm that today advises BlackRock + other bondholders. They have not yet accepted 
government's offer. White&Case is part of an elite group of firms specialized in investor-State claims. It participated in 73 #ISDS cases in #ICSID.
government's offer. White&Case is part of an elite group of firms specialized in investor-State claims. It participated in 73 #ISDS cases in #ICSID.
In a June 17 statement, White and Case states that the negotiations failed and warns that "our Group is considering all available legal rights and remedies." https://www.prnewswire.com/news-releases/statement-from-the-ad-hoc-argentine-bondholder-group-advised-by-white-and-case-llp-301079186.html
Two things can be interpreted from the statement.
Two things can be interpreted from the statement.
From White & Case's press release we can infere that:
1- the lawfirm and the bondholders are studying the possibility of an investment arbitration lawsuit
2- they could be using the threat of a lawsuit to put pressure on Argentina to give up its position in the negotiations.
1- the lawfirm and the bondholders are studying the possibility of an investment arbitration lawsuit
2- they could be using the threat of a lawsuit to put pressure on Argentina to give up its position in the negotiations.
Other international law firms, such as Dechert, do not hesitate to warn of "impending sovereign bond disputes," even though sovereign debt restructuring is "necessary or unavoidable." https://dechert.com/knowledge/onpoint/2020/5/covid-19-economic-crisis--impending-sovereign-bond-disputes-and-.html
Argentina faced 62 investor claims before international arbitration tribunals. https://investmentpolicy.unctad.org/investment-dispute-settlement/country/8/argentina/respondent
43 claims are due to Government's measures during the 2001 crisis. In 77% of the cases the investors won. The arbitrators rejected the "state of necessity" argument.
43 claims are due to Government's measures during the 2001 crisis. In 77% of the cases the investors won. The arbitrators rejected the "state of necessity" argument.
It is time for the government to accept that Bilateral Investment Protection Treaties (BITs) that include investor-state dispute settlement bring more risks than benefits. It should consider denouncing the existing ones and stopping the ongoing negotiations of new BITs.
government to accept that Bilateral Investment Protection Treaties (BITs) that include investor-state dispute settlement bring more risks than benefits. It should consider denouncing the existing ones and stopping the ongoing negotiations of new BITs.
