In an opinion today in the long-running Argentina bond litigation, Judge Griesa ruled that, subject to certain conditions, he would lift injunctions requiring that Argentina pay all debt ratably, including so-called “holdout” bondholders (see our prior post here). He did so because: “Put simply, President Macri’s election changed everything.” Specifically, Judge Griesa found that Argentina, unlike before, is willing to negotiate in good faith. And, given that willingness, he found that lifting the injunctions would facilitate settlement:
[A] number of plaintiffs have now agreed in principle to settle. If the court refused to vacate the injunctions, it would unfairly deny those plaintiffs the opportunity to resolve their disputes amicably with the Republic. It might also create an incentive for the remaining holdout plaintiffs to shun settlement, knowing that they derive leverage from the ability to prevent the Republic and the other plaintiffs from consummating agreements. The injunctions must not be “turned through changing circumstances into an instrument of wrong.”