Wednesday, May 15, 2013

The "Sleeping Hammer" and the Delivery Date for the N.Y. Appeal Court?

We expect the "Delivery Date" of the Court of Appeal´s Decision to be around June 27, 2013
Eugenio A Bruno
Garrido Law Firm
Director, TIG Americas

 

The market may believe that the "hammer" is sleeping, but I believe that the three judges are: 

i) discussing internally (inside the pannel) whether or not there is consensus about the decisions (ratable payment and injunctions). In this regard, my take is that want to issue an uniformed decision, without dissents, which could eventually be strong. They want to avoid potential reversals from the U.S. Supreme Court and overall, that their ruling is wrong;

ii) discussing, informally, the issues with debt, financial and legal experts;

iii) discussing the issues with their own legal teams (clerks);

iv) discussing, informally, the case with the U.S. State, Treasury and Justice Departments regarding the "national interest" and other policy implications of the ruling;

v) having some doubts about the effects of the injunctions and may be also about the pari passu clause, but to a lesser extent;

vi) FINALLY, writing the ruling, which must be legally well-grouded, and should be long, with citations about applicable jurisprudence, among other aspects.

All this, of course, takes time. But please dont go to the beach in the U.S. summer time before ruling!