jueves, 19 de junio de 2014

UNA EXPLOSION DEL PASADO: LA REESTRUCTURACIÓN EN EL PERÚ SUFRIÓ UN PROCESO SIMILAR. Elliot Management también estuvo involucrado

Buenos Aires Herald, Thursday, June 19, 2014.


ELLIOT MANAGEMENT ALSO INVOLVED
Blast form the past: Peru restructuring followed similar process
Even though it may seem an isolated case, Argentina's long-term legal battle with hedge funds is following a very similar path to that of Peru during the 1990s, even that country also squared up against hedge funds like Elliot Management in US courts.
In 1983, Peru began a long process of negotiations with creditors as result of its economic crisis, which finally led to a debt swap in 1996. The original securities were swapped for Brady Bonds. Around the same time the debt swap was announced. Elliott Management, the hedge fund run by Paul Singer and that later sued Argentina, purchased US$ 20.7 million worth of defaulted Peruvian loans for a discounted US$11.4 MILLION.
Elliott Associates, holding the only portion of Peru’s debt that remained outside the swap, immediately sued the nation and its Banco de la Nacion del Per{u in New York court for the origina amount of the loan plus interests. After mud deliberation, Elliot in June 2000 obtained a ruling against Peru for US$58 million, as well as an attachment order against a Peruvian assets that were used for commercial activity in the US
Unable to pay the sum, but wishing to honor its debt, Peru continued to repay the creditors that held Brady Bonds before paying Elliot Management. The hedge fund filed an injunction request to prevent Peru from paying off its restructures debt without also paying Elliott, successfully arguing that Peru had violated the pari  passu clause, which states that no creditor can be given preferential treatment.
Unable to make its debt repayments, Peru once again found itself facing default, and was forced to settle with Elliot in order to continue honoring its debts and remain in good standing to secure credit lines.
With the case alreade settled, the International Monetary Fund published a document in 2001, which was drafted by the Policy Development. Review  and  Legal  Departments, about the private sector’s participation in the financial crisis and the sovereign debt restructuring debt restructuring processes.

“This would be consistent with the classic behavior of so-called vulture creditors. These creditors tend to buy distressed debt at a steep discount and wait until the decks have been cleared through a restructuring before attempting to apply pressure for a favorable settlement, in many cases, through litigation”, the IMF said. – ©Herald staff

No hay comentarios:

Publicar un comentario en la entrada