Greece To Pay Hedge Fund Holdouts In Full

May 15 2012 | 12:56pm ET

After vowing not to do so, Greece has agreed to repay in full a €435 million bond issue that matured yesterday.

Greece spent months fighting with holdouts from its €206 billion bond swap, including a number of hedge funds. The country said it would default before paying in full after 96% of bondholders accepted a 75% haircut on the bonds. But facing political turmoil and another election, after this month's contest wiped out the country's leading political parties and which was seen as a vociferous rejection of the stringent bailout terms imposed by Europe on the country, Greece elected to pay the bonds after failing to strike a deal with the holdouts.

"The decision weighed carefully all relevant factors and implications as well as the current conjecture," the Greek Finance Ministry said. Among the issues was the wisdom of defaulting on the debt amidst the political crisis, with new elections coming next month after no party was able to form a government following this month's elections.

Greece can afford to pay the holdouts because it got €4.2 billion in additional bailout funds last week.

"Just think how angry the Green investors are going to be," one banker involved in the restructuring told the Financial Times. "They said all along they wouldn't pay these evil hedge funds and now they are."


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.