Elliott Associates has had its fun with Argentina, seizing its warships and suing it around the world and winning just about every important legal battle it has fought with the uniquely recalcitrant debtor over the latter’s 2001 default.
The thing is, though, Elliott can keep on winning those legal battles and it won’t matter a damn, because a uniquely recalcitrant debtor and a great disregarder of the rule of law Argentina may be, but it is also a sovereign country which no U.S. court can force to actually pony up the $1.3 billion it owes to Elliott and other hedge funds, especially if it’s actually willing to default again to avoid paying the “vultures.”
Well, now, while Elliott may have pushed Argentina to the brink of said re-default—it may not be eight days away from one like some countries whose courts keep interfering in its sovereign business, but it’s still seen as the most likely in the world to actually default—it doesn’t actually want to see that happen (because it means it will never see one red centavo of that $1.3 billion). So, with chief antagonist President Cristina Kirchner recovering from brain surgery, Elliott thought that now would be a good time to extend its first olive branch.
A hedge fund manager at the center of Argentina’s battle over its 2002 debt default told CNBC on Tuesday that a settlement would boost foreign investment in the country.
Jay Newman, senior portfolio manager at Elliott Management, one of the primary hedge funds fighting Argentina’s decision to restructure its bond investments, said: “We don’t think a default makes any sense.”
Hedge fund at center of Argentina battle urges settlement-CNBC [CNBC via Reuters via CNBC]
Will Argentina ever restructure its debt? [CNBC video]