Never let it be said that the wheels of international justice spin quickly, but, with the pace of a Siberian jail sentence, the Permanent Court of Arbitration finally handed down its merits award in the Yukos litigation.
When will your company’s Section 503(b)(9) claim be paid? Under normal circumstances, Section 503(b)(9) claims are paid when the debtor makes a final distribution to creditors. However, a Section 503(b)(9) creditor can file a motion to demand immediate payment of its claim. This article will address the standard employed by the Bankruptcy Court in determining whether to grant immediate payment of a Section 503(b)(9) claim.
Unless the plaintiffs request a stay (and quick!), this will probably be the last request for Judge Griesa to stay the injunction before Argentina defaults officially fails to put money into the bank accounts of exchange bondholders.
I name names and point fingers in the Wall Street Journal. NML gets some blame for overplaying its hand, but the fault primarily lies with the federal courts for letting the case go forward. I understand the courts being angered by an unrepentant debtor thumbing its nose at them, but the federal courts should know better than to get into a pissing match with a foreign sovereign. Federal judges are possessed of awesome powers, but not that awesome.
Payments startups may be fast and smart, but banks have compliance know-how, an established customer base and physical branches that will help them hook customers on new products.
