Mutual funds seeking to reclaim assets from overseas companies which default on bonds may enjoy a moral victory but little financial satisfaction from an anticipated U.S. Supreme Court decision.

If the Supreme Court upholds lower courts' decisions barring non-U.S. companies from using assets until U.S. creditors are paid, it will still probably be very hard to enforce the ruling, industry observers say. But, the suit could be the first of many to come and could eventually have an impact on how mutual funds cope with the risk of overseas investments.

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