THE INVOLVEMENT OF PAUL SINGER
The emergence of vulture funds with the 1996 Elliott Associates, LP vs Republic
of Panama case opened up a new legal option to force sovereign governments to pay the full value of their debts (plus interest), rather than the discounted amounts arrived at through negotiations arbitrated by the International Monetary Fund and other international institutions. The face value of the discounted Argentine debt that Elliott bought after the country’s 2001 default for $48m is today $630m. The fund wants repayment for the full value of the debt, as it did in 1995 with Panama. This amounts to $1.5bn, which could rise to $3bn including interests and fees.