On July 22, a New York judge denied Argentina a stay on the payment of over $1.3 billion in bonds to hedge fund managers. The country must pay all of its bondholders by July 31 or default on the debt. David J. Fernandez, shareholder in Buchanan Ingersoll & Rooney’s Public Finance section, was quoted in two articles in the Business Insider about the situation, one before the judge’s decision and one after the stay was denied.

"The Argentine government right now is playing with a lit match and holding it on the lit ends," explains Fernandez. "If there's no stay July 31st is going to come and go and there will be default.”

The Argentine government had previously defaulted in 2001.

“When they defaulted before was it the end of the world? No. Was it painful? Yes," says Fernandez.

Fernandez also explains that, "Part of the problem is that they're not completely out from underneath the first time they did it [default]... there's a lot of countries that won't trade with them, a lot of countries that won't lend to them. If they cross the default line and they go there [this time] it doesn't matter if 2015 happens... there won't be any liquidity for them.”

Read the full article – “Argentines Are Preparing Themselves For A Lost Year” (Business Insider, July 22, 2014)

Read the full article – “Argentina Just Played Its Final Card... And It Lost” (Business Insider, July 22, 2014)