This is something right out of an Ayn Rand novel. Billionaire hedge fund manager Paul Singer is a come to life modern day Ragnar Danneskjöld, using financial tactics to seize government military planes and ships.
Argentina's ARA Libertad, a navy training ship, has been seized in Ghana as collateral for unpaid bonds dating from the South American nation's economic crisis a decade ago, according to AP.
The Ghanaian judge acted on a claim by NML Capital Ltd., which is based in the Cayman Islands. Its owner, Singer, leads a group demanding payment in full, plus interest, for dollar-based Argentine bonds bought at fire sale prices after the country's economy collapsed a decade ago, forcing a sharp devaluation of its currency.
Argentina has announced the immediate evacuation Saturday of about 300 crew members from the ship. Only the captain and a few other members of the crew of 326 sailors will remain.
NML Capital has said Argentina owes it about $350 million, and offered to let the ship leave if Fernandez's government put up a $20 million bond to be forfeited.
According to AP, the bondholder group could potentially ask Ghana's courts to also seize a military airplane flown by Aerolineas Argentinas.
Will peace come to the world as hedge fund managers seize military ships and aircraft of countries that can't pay their debt?