The US-based fund management company Firebird has today begun appealing an Australian court's decision to lift a freeze on Nauru's bank accounts.
The company Firebird is trying to recover 27 million US dollars owed in government bonds issued in the late 1980s.
Earlier this month the Nauru government won a court challenge to the freeze on its accounts saying as a sovereign nation it was immune.
But Nauru has been unable to access its accounts pending an appeal by Firebird and says its services including those for asylum seekers would be affected.
Firebird's appeal began today before a bench of three judges at the New South Wales Court of Appeal.
Further argument is to be heard on Tuesday morning.