NML-Captial sets eyes on Argentine navy vessel docked in South Africa

The vessel had to abandon the joint naval exercise Atlassur IX with South Africa, Brazil and Uruguay because of mechanical problems and was pulled to Simonstown where it is undergoing repairs that could demand two months. According to Buenos Aires media, the Argentine embassy in Pretoria is aware of the situation and ready for an immediate legal reply if there is litigation with one of the funds under control of Paul Singer that successfully impounded the Argentine navy’s flagship ARA Libertad in Ghana where it remains retained. However contrary to what happened in Accra where Argentina has minimum contacts, with South Africa, there are strong political and trade links, and President Jacob Zuma is considered a good friend of Argentina, according to Buenos Aires media. Furthermore, Elliot Capital three years ago was attempting something similar buying South African companies bonds at rock bottom prices to later try and recuperate the face value plus interests. Apparently the ‘vulture fund’ has yet to win a case in South Africa although several are pending. Argentine economist and banker Federico Sturzenegger in a book under the heading “Default and lessons from a decade of crisis”, (obviously referred to Argentina), says that ‘vulture funds’ rarely have favourable sentences and equally rarely manage to impound assets of countries or corporations which they are demanding. In the book, Stursenegger mentions 35 known cases of this kind of litigations in the last 20 years, of which in only six cases did the funds recover 100 per cent of bonds face-value; 15 were lost; in six less than a third for which they sued, and from the rest there is no available information. However Elliot Capital was considered one of the most successful hedge funds by Wall Street last year, with a profit of 14.6 percent, very uncommon in these lean days.