The lawsuits and court rulings
La Rioja's default is not limited solely to negotiations with its creditors. In 2024, the province was sued in the courts of New York by bondholders, who demanded the payment of principal and interest owed.
In August of that same year, the bondholders filed a request for summary judgment before the Southern District Court of New York.
The case of La Rioja caused great controversy, as the province allocated most of the funds obtained through the green bonds to the construction of the Arauco Wind Farm, managed by the state-owned company Parque Eólico Arauco S.A.
Subsequently, the government of La Rioja sold the entirety of one of its subsidiaries, Vientos de Arauco Renovables, to Pampa Energía S.A. for an amount of 171 million dollars. However, despite this income, the province did not meet its financial commitments, which caused discontent among creditors.
As a consequence of these defaults, in September 2024, the U.S. justice system issued a ruling ordering La Rioja to pay about 40 million dollars to the bondholders in terms of damages and losses. Additionally, the resolution established the obligation to pay daily interest for each day of delay in payments.
The sentence was issued by Judge Jessica Clarke, who determined that the stance adopted by the provincial government had caused a direct harm to investors.
