Ever since Argentina defaulted on $81 billion of debt in 2001, it has been thumbing its nose at its creditors. Those who rejected its offers in 2005 and 2010 to swap non-performing securities for new bonds worth much less have won a series of judgments in American courts ordering the country to pay. But Argentina had few assets in America that these "hold-outs" could seize. Recently, however, the creditors-led by Elliott Management, a New York-based hedge fund-have dramatically strengthened their position. On October 2nd port officials in Ghana detained an Argentine frigate. A local court had ordered them to hold the ship until Argentina paid a $2om bond to satisfy the investors' claim. The vessel remains anchored there today, though most of its sailors have departed.
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