Saturday Dec 28, 2024
Saturday Dec 28, 2024
Monday, 15 May 2023 05:47 - - {{hitsCtrl.values.hits}}
By Ashwin Hemmathagama in New York
Plaintiff Hamilton Reserve Bank Ltd. (HRB) and the defendant Government of Sri Lanka submitted a joint status letter on Friday to the Southern District Court of New York outlining the schedule in response to the order US District Judge L. Denise Cote issued on 20 April.
According to this schedule, jointly signed by the plaintiff’s lawyers Bleichmar Fonti and Auld LLP and the defendant’s lawyers Clifford Chance US LLP both parties are required to complete the discovery before 20 June, the summary judgement motions by 26 June, summary judgement opposition and cross-motions to stay by 17 July, and the summary judgement replies by 31 July this year. Opposition to cross-motion to stay is due on or before 14 August followed by the cross-motion to stay reply due on or before 31 August, 2023.
The lawyers for the plaintiff and the defendant jointly stipulated a protective order to the Court regarding the discovery material, which includes information of any kind produced or disclosed in the course designated as confidential, limiting access and use by parties not related to the case. Judge Cote so ordered the stipulation.
Sri Lanka was sued in the United States by a bondholder after the Government defaulted on its debt for the first time in history while struggling to stop an economic meltdown where HRB, owns over $ 250 million in principal amount of $ 1 billion worth of Sri Lanka’s 5.875% International Sovereign Bonds (ISBs) issued in 2012, filed the lawsuit in June last year in a New York federal court seeking full payment of principal and interest.
The Bonds matured on 25 July 2022. Hamilton alleged that due to Sri Lanka’s default, it is owed $ 250.19 million in principle and $7.349 million in accrued interest (before accounting for pre-and post-judgement interest). Sri Lanka in mid-April announced a moratorium on foreign debt repayments, including the Bonds and since then has made no payments on the Bonds. The Government of Sri Lanka filed a motion in September 2022 to dismiss on the grounds that the plaintiff lacks contractual standing.
