Fund threatens to sue over Greek bond losses

Article reported that Vega Asset Management, one of the most prominent hedge funds holding Greek bonds threatened legal action against officials negotiating the country’s debt restructuring in December 2011 if losses were too deep, raising a hurdle to eurozone leaders’ hopes of quickly reducing the country’s debt levels.

The Greek bond deal was the centrepiece of a €130bn second Greek bail-out negotiated at an October 2011 summit in Brussels. Bondholders agreed to take a 50% 'haircut' on the face value of their bonds, which officials estimated would knock about €100bn off Greece’s €350bn debt pile.

ESO: Background information: ‘Haircut’ dispute risks delaying Greek rescue http://www.europeansources.info/record/haircut-dispute-risks-delaying-greek-rescue/

ESO: Background information: EU reaches agreement on Greek bonds http://www.europeansources.info/record/eu-reaches-agreement-on-greek-bonds/

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

Kathimerini, 21.12.11: Hedge fund walks out on Greek debt swap talks http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_21/12/2011_419472

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