The United States Supreme Court this past Tuesday made known its desire for the Obama administration’s input regarding the appeal sought by holders of Argentina’s defaulted bonds, who dispute the Second United States Circuit Court of Appeals ruling last July that blocked the seizure of approximately 105 million dollars in Central Bank of Argentina assets held at the Federal Reserve Bank in New York. The justices requested that the administration’s counsel at the high court, the United States solicitor general, articulate the official government position on the appeal question. The Second Circuit decision constituted a serious setback for holdout bondholders, including plaintiffs EM Ltd. and NML Capital Ltd. in the current action, that refused to participate in a greatly discounted Argentine bond swap. The court held that the principle of sovereign immunity delineated in the Foreign Sovereign Immunities Act protected the Central Bank of Argentina deposits from confiscation or freeze, because said funds linked to a foreign central bank did not figure in commercial transactions. Thus, the freeze on the aforementioned assets in effect since 2006, was lifted. The present suit numbers among many arising from attempts to recover debt created by Argentina’s 100 billion dollar bond default more ten years ago, and Argentine funds in the U.S. have been targeted. The submission of the solicitor general’s brief elaborating the government’s views on the proceedings might be months away. Only at that time will the Supreme Court make its determination on the appeal issue.