LONDON, March 16 (Reuters) - Argentina is facing a London court claim for nearly 1.6 billion euros ($1.8 billion) from four hedge funds, who previously sued the South American republic over GDP-linked
Argentina Faces $1.84 Billion UK Court Claim Over GDP-Linked Securities Dispute
Legal Dispute and Court Proceedings
Background of the Claim
LONDON, March 16 (Reuters) - Argentina is facing a London court claim for nearly 1.6 billion euros ($1.8 billion) from four hedge funds, who previously sued the South American republic over GDP-linked securities and left it with a similar-sized debt.
Details of the Court Case
High Court Ruling and Appeals
Lawyers representing the four funds said in a statement on Monday that they had applied to London's High Court for an order that Argentina owes them the sums in relation to euro-denominated securities.
The funds sued Argentina back in 2019 and the High Court ruled in their favour in 2023, leaving Argentina on the hook for 1.33 billion euros plus interest. Argentina's attempts to appeal were ultimately rejected in 2024.
Outstanding Payments and Compliance Issues
Quinn Emanuel, the law firm representing the funds, said the money owed "remains substantially unpaid" and the amount outstanding is approximately 1.6 billion euros.
They said Argentina had subsequently not complied with a court order in relation to the publication of GDP data and the holders of the securities were now owed another 1.58 billion euros, including interest.
Responses and Statements
Argentina's Position
Argentina's ministry of economy did not immediately respond to a request for comment.
Statements from Legal Representatives
In a document filed with the High Court, Quinn Emanuel quoted Argentina's lawyers as stating that a new methodology for GDP data was the "most accurate measurement of Argentina's economic activity available".
Context of the Securities
Origin of the GDP-Linked Securities
The warrant, designed to pay investors more if Argentina's economic output exceeded certain thresholds, was initially issued as part of the country's 2005 debt restructuring.
Currency Conversion
($1 = 0.8697 euros)
Reporting Credits
(Reporting by Sam Tobin; additional reporting by Rodrigo Campos in New York and Nicolas Misculin in Buenos Aires; Editing by Chizu Nomiyama)
