Argentinian Recovery group appeals Multicanal's protection from lawsuits

By Jeff Pines

Washington, Jan. 20 - A group including Argentinian Recovery Co. LLC and Huff Asset Management Co. LLC appealed a court order giving Multicanal SA permanent protection from lawsuits in U.S. courts while it reorganizes.

The notice of appeal was filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York. The appeal has been filed with the district court.

Earlier this month, the court granted a permanent injunction against lawsuits.

Argentine cable television provider Multicanal is attempting to reorganize itself out of court in an extra-judicial proceeding known as acuerdo preventivo extrajudicial. It filed for relief under section 304 on Jan. 16, 2004.

When a country has a reorganization process that provides creditors with similar protections to those of U.S. law, the bankruptcy code provides for protection from lawsuits in U.S. courts. The group argued non-consenting bondholders would not get as good a deal as consenting bondholders and that the Trust Indenture Act took precedence over the section of the U.S. Bankruptcy Code providing foreign companies with protection from lawsuits.

The involuntary Chapter 11 case number is 04-10523. The case number for the APE is 04-10280.

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