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Judi Lynn

(160,211 posts)
Fri Oct 9, 2015, 11:51 PM Oct 2015

US hedge fund threatens Peru with law suit over debt

US hedge fund threatens Peru with law suit over debt
5 hours ago

A US hedge fund has threatened to sue Peru over bonds issued by the country's former military regime.



Connecticut-based hedge fund Gramercy purchased the defaulted debt at a discount in 2008 after other bondholders failed to reach a deal. Peru's finance minister said the government would oppose any legal action outside its borders.

Purchasing defaulted bonds on the cheap to make a profit in a settlement is a common hedge fund tactic.

The South American country defaulted on the $5.1bn (£3.33bn) in bonds in the 1980s.

More:
http://www.bbc.com/news/business-34492745

LBN:
http://www.democraticunderground.com/10141229935

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