Apr 4, 2012

Vietnam - Elliott Ends Case Against Vietnamese Shipbuilder


Just four months after suing Vietnam's state-owned shipbuilder, Elliott Associates is abandoning the case.

Elliott has dropped its suit against Vinashin, filed in December in the U.K., over the company's default on a US$600 million syndicated loan.

It is unclear why Elliott, which in the past has not shied away from long court battles against sovereign governments—it is still battling Argentina over that country's default 10 years ago—decided to drop the case, but it coincides with the 20-year prison sentence against former Vinashin CEO Pham Thanh Binh, who was convicted of ignoring government regulations for state-owned companies in putting Vinashin more than US$4.4 billion in debt.

Elliott sued after Vinashin offered just 35 cents on the dollar for the debt in default. The hedge fund demanded face value and unpaid interest, totaling some US$13.2 million.

The hedge fund had claimed that the Vietnamese government had guaranteed Vinashin's debt, an argument rejected by Vietnam.

finalternatives.com



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