Vulture fund

Judge Griesa rules in favour of vulture fund

New York Federal Judge Thomas Griesa has issued a ruling urging Argentina to pay 54.33 million euros (US$75.1 million) to the Capital Ventures International Fund. The Argentine government -represented by Cleary, Gottlieb, Steen & Hamilton LLP- is expected to appeal the ruling within the next few weeks.

The amount totals 28.3 million euros of capital plus interest of 26 million euros. Griesa's ruling ordered the public titles involved in the suit can't be sold or transferred without notice.

In addition, the Ministry of Economy yesterday reported that a French court lifted a US$1 billion embargo on Argentina's assets. The embargo - US$645 million of capital plus interest of US$440 million- was imposed on Air France accounts whose funds had been allocated to pay off a debt held by the airline against the Argentine government. Yesterday, the appeal filed by NML Capital - a vulture fund affiliate of Elliot Associates - was refused.

A year ago, US Judge Griesa issued a restraining order to freeze public private and assets held by state-run bank Banco Nación in the USA. The measure was extended in April 2010.

The Fernández de Kirchner administration expected Judge Griesa would rule in favour of Argentina, adducing the country's willing to pay down sovereign debt after Argentina's last debt-swap of defaulted bond reached a 92 percent acceptance rate. However, those arguments were not enough for U.S. Judge Thomas Griesa.

(Published by Ámbito - February 2, 2011)