Caught in the battle between hedge fund billionaire Paul Singer and Argentina, some hedge funds complain that they are being held hostage.
Bondholders who agreed to a 70 percent hit as part of Argentina’s debt restructuring are concerned they might not get paid all they are owed if Singer’s Elliott Management gets its way.
Gramercy Funds Management, one of the bondholders that agreed to accept 30 cents on the dollar when Argentina defaulted in 2001, said as much to Manhattan federal court Judge Thomas Griesa yesterday.
“We’re the ones being held hostage,” Sean O’Shea, Gramercy’s attorney, told Griesa at a hearing.
Elliott had asked the judge to lift a stay that would require Argentina to pay up to $1.3 billion to Elliott in December, when Argentina makes payments to other bondholders.
REVERSE VULTURE CAPITALISM
NEW YORK (CNNMoney) — Occupy Wall Street, the protest movement launched to fight corporate greed and corruption, is now buying up peoples’ debts and forgiving them.
Its new initiative, called Rolling Jubilee, is being spearheaded by Occupy’s Strike Debt team to protest a “predatory” lending system, according to its website. The group will hold a telethon and variety show called “The People’s Bailout” in New York on Nov. 15 to raise money for the cause, and the proceeds will be used to buy defaulted debts — such as unpaid student loans and medical bills — and erase them.
“The basic premise is simple: people shouldn’t have to go into debt for an education, because they need medical care, or because they have to put food on the table during hard times,” Occupy’s website says.