And what a project that was!
I honestly laughed when I found out Elliott was involved. These guys are known for getting their hands dirty, and are known as a 'vulture fund' in my industry. They essentially wait for an ****ed situation: mismanaged assets, a company near default, awful management and find a backdoor way via ownership to get a seat at the negotiating table (bridge loans to distressed companies, buying up debt of bankrupt companies on the secondary market, etc.). They have teams of lawyers and will do incredible things in order to create value for their unit holders.
Just to illustrate how far they will go...
NEW YORK –When Paul Singer’s Elliott Capital launched a 15-year battle to wrestle billions out of Argentina for lapsed debt payments, it wasn’t the first time the hedge fund had taken on a foreign government.
But few engagements have turned into such a high-profile international scuffle.
In order to collect the decade-old debt, Singer’s fund tried to claim money deposited by the country’s central bank in the U.S. and Europe. And it sought to seize two satellite launch contracts between Argentina and SpaceX.
Elliott Capital’s arguably most audacious scheme came in 2012, when the Argentine navy’s proud three-masted tall ship pulled into the port of Tema in Ghana with more than 250 crew members on board, recent graduates of the Escuela Naval de Argentina participating in an annual training session. The Libertad was worth a fraction of what the hedge fund claimed that it was owed, but the 100-meter ship quickly became a chip in an international fight over billions in old debt.
Elliott Capital persuaded a Ghanaian court to seize the vessel so it could collect on its debt. Argentinian officials would lash out at Elliott as “unscrupulous financiers” and after more than two months the ship was released.
Four years later, though, Elliott Capital and several other hedge funds and creditors are about to get their satisfaction.
The Argentine government agreed to a settlement that would allow Singer’s fund to walk away with $2.4 billion for bonds that the government had failed to pay on, according to court documents. The bonds had a face value of $617 million, but had been purchased for about $117 million, according to an analysis of court records by Martin Guzman, a postdoctoral research fellow at Columbia University Graduate School of Business. Argentina’s Senate is scheduled to sign off on the deal this week.
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what a moron, he can stay in Bbilan
