Elliott Wins Asset Freeze Against Argentine Central Bank

Apr 8 2010 | 4:17am ET

Elliott Management has won another round in court in its battle with Argentina over its debt default eight years ago.

A federal judge ruled yesterday that Elliott and another hedge fund, NML Capital, can seize US$105 million in assets owned by Argentina’s central bank. U.S. District Judge Thomas Griesa, who last year held Argentina in contempt of court for failing to turn over documents to another hedge fund, remained skeptical of Argentina’s claims that the central bank is independent of the Argentina government.

The judge said that Argentine President Cristina Fernandez’s actions prove that she controls the central bank. He also offered harsh words for the South American country, scolding it for enmeshing the court “in years of wasteful litigation with no end in sight.”

Argentina said it would appeal Griesa’s ruling, noting that in the contempt of court case involving hedge fund Aurelia Capital Partners, the Second Circuit Court of Appeals overturned his decision. That case involved an asset freeze against an Argentine state pension fund; the pension was ruled to enjoy sovereign immunity.

Elliott and NML are among the roughly 25% of holders of the $100 billion in sovereign debt Argentina defaulted on in 2002 not to accept a deal from the country’s government. Argentina has swapped the rest of the debt for about 30 cents on the dollar.

“We proved that Argentina has over many years interfered with the actions of the Central Bank so that it simply became an arm of the Argentine government,” Elliott’s lawyer, David Rivkin, told the Associated Press.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.