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Economy
In reply to the discussion: Weekend Economists Sit on a Wall August 23-25, 2013 [View all]xchrom
(108,903 posts)23. Argentina Just Lost Huge To A Bunch Of Hedge Fund Creditors, And The Judge Was Brutal About It
http://www.businessinsider.com/argentina-loses-debt-appeal-2013-8
Argentina just lost its appeal to continue refusing to pay a group of hedge fund managers, led by Paul Singer, $1.6 billion worth of sovereign debt dating back to its $95 billion default in 2001. You can read the full decision here (via Credit Slips).
For years the country has been trying to avoid paying a bunch of "vulture" hedge fund managers that refused to take a 70% haircut on Argentine bonds like every other investor. This has resulted in some wacky news items Paul Singer getting the government of Ghana to impound an Argentine naval ship last October, President Cristina Fernandez de Kirchner flying commercial to see the Pope so her jet isn't taken you get the idea.
Now it's (almost) come to a head. A New York Judge fully rejected Argentina's appeal of a decision made last year a decision that would've had it pay Singer and company in full. Argentina wanted to be able to pay hedge funds that restructured debt without making a payment to Singer (the "vulture" , and yet again that idea has been given a massive thumbs down.
The decision comes from U.S. Circuit Judge Barrington Parker and frankly, it seems like he zero patience for Argentina. He doesn't buy the argument that paying Singer causes injury to third parties, basically implies the country hasn't been arguing in good faith, and binds Bank of New York Mellon, Argentina's custodial bank, to comply with it.
Read more: http://www.businessinsider.com/argentina-loses-debt-appeal-2013-8#ixzz2csw5H0xJ
Argentina just lost its appeal to continue refusing to pay a group of hedge fund managers, led by Paul Singer, $1.6 billion worth of sovereign debt dating back to its $95 billion default in 2001. You can read the full decision here (via Credit Slips).
For years the country has been trying to avoid paying a bunch of "vulture" hedge fund managers that refused to take a 70% haircut on Argentine bonds like every other investor. This has resulted in some wacky news items Paul Singer getting the government of Ghana to impound an Argentine naval ship last October, President Cristina Fernandez de Kirchner flying commercial to see the Pope so her jet isn't taken you get the idea.
Now it's (almost) come to a head. A New York Judge fully rejected Argentina's appeal of a decision made last year a decision that would've had it pay Singer and company in full. Argentina wanted to be able to pay hedge funds that restructured debt without making a payment to Singer (the "vulture" , and yet again that idea has been given a massive thumbs down.
The decision comes from U.S. Circuit Judge Barrington Parker and frankly, it seems like he zero patience for Argentina. He doesn't buy the argument that paying Singer causes injury to third parties, basically implies the country hasn't been arguing in good faith, and binds Bank of New York Mellon, Argentina's custodial bank, to comply with it.
Read more: http://www.businessinsider.com/argentina-loses-debt-appeal-2013-8#ixzz2csw5H0xJ
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