Sovereign debt

Singer is a vulture capitalist because of Elliott Management Corporation's investments in distressed debt.[35]: 301 [36] In the early 1990s, Singer began using the strategy of purchasing sovereign debt from nations in or near default, such as Argentina,[5][37][38][39] and Peru,[10][40][41] through his NML Capital Limited,[10] and Republic of the Congo through Kensington International Inc.[9] Singer's practice of purchasing distressed debt from companies and sovereign states and pursuing full payment through the courts has led to criticism.[39][42] Singer and EMC defend their model,[6] saying it is "a fight against charlatans who refuse to play by the market's rules",[37] and supporters of the practice have said it "help[s] keep kleptocratic governments in check".[43] In 1996, Elliott bought defaulted Peruvian debt for $11.4 million.[41] Elliott won a $58 million judgment[37] and Peru had to repay the sum in full under the pari passu rule.[40] When former president of Peru Alberto Fujimori was attempting to flee the country due to human rights abuses and corruption, Singer confiscated his jet and offered to let him leave the country in exchange for the $58 million payment from the treasury. Fujimori accepted.[38][44][23] In the 1990s the Kensington International division of EMC purchased US$30 million (£18m) of "Congolese sovereign debt... allegedly for less than $20m". Kensington subsequently spent years trying to be paid in full through the courts.[8] In 2008 Kensington and the Republic of Congo settled for an undisclosed amount.[23]

After Argentina defaulted on its debt in 2002, the Elliott-owned company NML Capital Limited refused to accept the Argentine offer to pay less than 30 cents per dollar of debt.[5] Elliott sued Argentina for the debt's value,[45] and the lower UK courts found that Argentina had state immunity. Elliott successfully appealed the case to the UK Supreme Court, which ruled that Elliott had the right to attempt to seize Argentine property in the United Kingdom, and on October 2, 2012, Singer arranged for a Ghanaian Court order to detain an Argentine naval vessel in a Ghanaian port in an effort to force Argentina to pay the debt, but was rebuffed when the seizure was barred by the International Tribunal for the Law of the Sea.[46][47][48][49][50][51] In February 2013, the U.S. appeals court heard Argentina's appeal in the case of its default and debt to NML.[52] In March 2013 Argentina offered a new plan,[53] which was dismissed first by the lower courts and then the United States Court of Appeals for the Second Circuit on August 23, 2013, and then again in June 2014 in the U.S. Supreme Court.[54][55] In March 2014 NML Capital unsuccessfully attempted to satisfy court awards by suing SpaceX, seeking the rights to two satellite-launch contracts bought by Argentina valued at $113 million.[37]: 2 [56][57][58][59] In early 2016, US courts ruled that Argentina must make full payments to holdout bondholders by February 29.[60] In February 2016 Argentina reached an agreement with Singer.[61][62][63][64][65]

(http://www.autoadmit.com/thread.php?thread_id=5817918&forum_id=2],#49566568)