A new player enters the litigation picture:
Argentina default: George Soros sues US bank in London over $500m payment
Hedge funds take legal action against Bank of New York Mellon for freezing payment by Argentina, which has also banned the lender from operating in the country
The billionaire investor, who famously “broke the Bank of England” after shorting the pound, is joined by Knighthead Master Fund, RGY International and Kyle Bass’ Hayman Capital Master Fund in the lawsuit against Bank of New York Mellon.
According to Bloomberg News, the group owns more than 1.3 billion of euro-denominated bonds.
Bank of New York Mellon said: “The suit is without merit. BNY Mellon has consistently followed the binding court orders that govern its actions as trustee in this matter.”
In a further twist, Argentina banned Bank of New Mellon from operating in the country, arguing that the lender “isn’t complying with its operational objectives”.
Bank of New York Mellon declined to comment on the ban.
Argentina is attempting to replace Bank of New York Mellon as trustee with state-run Banco Nacion
Soros has invested heavily in Argentina, particularly in YPF SA and Adecoagro SA.