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Thursday, October 11, 2012

Seizure of Argentina Naval Vessel Legal

Reuters reports that a Ghana court has upheld the seizure of an Argentinian naval vessel by some of Argentina's creditors.
Argentina declared a sovereign default a decade ago and now faces a raft of lawsuits in U.S. courts by bondholders seeking state asset freezes to recover the value of defaulted bonds.

The Libertad, a navy frigate with 200 crew, was detained in Ghana's eastern port of Tema on October 2 under a court order sought by NML Capital Ltd, an affiliate of the investment firm Elliott Management.

Argentina's defence ministry filed a motion contesting the detention claiming sovereign immunity. It said that, due to its military nature, the vessel could not be targeted by creditors.

In its ruling the commercial court in Ghana's capital Accra said Argentina had forfeited such immunities when it issued the bonds.

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