A group of hedge funds, including Palladian Partners, is seeking US court recognition of English court rulings that hold Argentina liable for €1.5bn in GDP-linked warrants, as Argentina eyes renewed access to global capital markets, according to a report by Reuters.
The investors – represented by Quinn Emanuel Urquhart & Sullivan – secured favourable rulings in the UK in October 2024 and April 2023 over allegations that Argentina manipulated GDP data to dodge payouts tied to its economic performance. The filings mark a strategic move to attach Argentine assets in the US, contingent on recognition of the UK judgements.
The action coincides with Argentina’s IMF-backed reform programme, which includes efforts to normalise financial relations and re-enter international markets. The hedge fund group disputes Argentina’s claims to the IMF that “good-faith” negotiations over the judgements are ongoing, stating no such talks exist, and argues that there can be no return to market access until the country addresses its default under the English rulings.
