Sunday, October 28, 2012

Frigate-aboudit: Argentina loses big bond ruling to hedge fund billionaire


According to the NY Post billionaire Paul Singer’s costly, take-no-prisoners approach to Argentina is finally paying off.  A federal appeals court in New York handed Singer’s Elliott Management its biggest win yet in the hedge fund’s almost 10-year battle with the South American country over its 2001 default.

Elliott’s recent seizure of Argentina’s prized naval ship in Ghana — an embarrassing blow to the nation that aimed to get it to pay up — is a minor flap compared to the potential payday from this latest legal victory.

On Friday, a unanimous three-judge panel ruled that Argentina must pay Elliott affiliate NML Capital in full every time it pays other bondholders who agreed to take a haircut. Argentine bonds sank on the decision, and the price of guaranteeing its debt against default skyrocketed on the ruling.   The country quickly vowed to take the case to the US Supreme Court...

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