Thursday, 06 December 2012 04:30
NEW YORK: When nations can't pay their creditors, the phones start ringing at Cleary Gottlieb Steen & Hamilton in New York.
Over the past three decades the firm has become the go-to legal adviser for countries in financials. In the past five years it has represented Greece, the Republic of Congo and the Ivory Coast.
Its work often takes place behind closed doors, but a fight over Argentina's debt that is coming to a head in US courts has pushed the law firm into the spotlight.
For a decade, Cleary Gottlieb has helped Argentina fend off nearly all payment demands from a group of bond investors who refused to go along with the country's steeply discounted debt restructurings.
But now that strategy may backfire, after a federal district court judge on Nov. 21 ordered Argentina to put $1.33 billion into escrow for some of those investors. While the firm scored a temporary victory last ...