Argentina debt settlement with vulture funds

After the lower house approved a $171 million payment to holdout creditors Bainbridge Ltd. and Attestor Value Master Fund LP in late June 2026, the Milei administration hoped the deal’s 30 % haircut and stand‑still clause would lift U.S. court‑ordered execution measures on Argentine assets such as Banco Nación shares and Aerolíneas Argentinas.

In July 2026 the U.S. Court of Appeals for the District of Columbia affirmed the lower‑court judgment, rejecting Argentina’s appeal and confirming that the state must satisfy a CIADI arbitration award for the 2008 expropriation of Aerolíneas Argentinas and its sister carrier Austral. The original $321 million award, plus accrued interest, now exceeds $390 million as of December 2024. The court applied a twelve‑year prescription period rather than the three‑year period argued by the government, allowing the Titan Consortium—now the holder of the claim after acquiring the rights from Burford Capital—to pursue seizure of Argentine sovereign assets abroad.

The ruling does not order immediate payment but revives the possibility of foreign‑asset seizures and reactivates related litigation, including the Webuild case. Argentina’s Treasury said it is reviewing all legal options to mitigate the impact, noting that the debt adds to the country’s longstanding fiscal challenges.