Argentina will need to reveal the methodology it used to measure GDP and economic activity in 2013, according to a ruling from a federal court in New York published on Wednesday…. [Aurelius Capital Management] claims then-President Cristina Fernandez de Kirchner’s administration misrepresented GDP figures that year to avoid paying holders of the securities billions of dollars they were owed. The warrants, which trigger payouts when specific growth thresholds are met, were offered to creditors in a restructuring after Argentina defaulted on $95 billion of debt in 2001.
The hedge fund alleges that fudged statistics from Kirchner, who is now vice president, prevented the firm from cashing in on a roughly $61 million payout.
God, it’s no wonder Kirchner’s closest allies wanted the ability to do to recalcitrant American jurists what Argentina does with them, and equally little wonder Paul Singer refused to have anything to do with those restructured bonds. It’s probably a great surprise to all of those hedge funds who thought Argentina’s defaulting days were passed it.
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