Aurelius Capital Management and a group of several other hedge funds have revived a legal dispute with Argentina, renewing claims for payments linked to the country’s economic performance, according to a report by Bloomberg.
The funds have refiled a lawsuit in New York after an earlier case was dismissed in 2024 on procedural grounds.
The previous ruling found that investors had failed to meet contractual preconditions required to bring legal action under the terms governing Argentina’s GDP-linked warrants. In a new complaint filed this week, the hedge funds said they have now satisfied those requirements, including securing written requests from at least 25% of warrant holders to the bond trustee.
Aurelius first launched the case in 2019, alleging that Argentina failed to make almost $160m in payments owed on $1.4bn of GDP-linked securities. Other hedge funds later joined the lawsuit with similar claims. The warrants were issued to investors who accepted restructured bonds at a steep discount following Argentina’s 2001 sovereign default.
The securities were designed to pay out when Argentina’s gross domestic product grew by more than 3% in a given year. Aurelius was among a group of hedge funds that accumulated significant portions of Argentina’s defaulted debt in the years following the crisis.
