US hedge fund seizes Argentine naval ship

The ARA Libertad is now the property of Elliott Capital Management.

An American hedge fund has seized a ship owned by the Argentine navy from a Ghanaian port, as part of an attempt to collect on bonds purchased after Buenos Aires defaulted in 2001.

The fund, Elliott Capital Management, has been engaged in a long-running legal battle with the Argentine government. It specialises in what is euphemistically termed "distressed debt" – it buys up bonds held by countries which are extremely likely to default, or which have already defaulted. As a result, it gets them for a pittance, around one fifth of face value.

The strategy from there is to refuse to accept the default. If it does not voluntarily enter into any debt-swaps, then the company can continue to claim it is rightfully owed the full amount on the bonds. If, eventually, it gets paid, a massive profit has been earned.

This tactic has led to Elliot, and other funds which operate in a similar manner, being dubbed a "vulture fund", profiting from dead or dying economies. The firm itself insists it only takes action against countries that can afford to pay, but choose not to.

The decade-long fight to recover the face value of the Argentine bonds has been carried out on a number of battlefields, from the US Courts to the World Bank (£), but the latest turn is the most nautical of them all.

The seizure, of a 100m-long tall ship staffed by 200 sailors, appears to have been planned for some time by Elliott. The FT reports (£):

Elliott had been waiting for the ship to stop in a port where it would have a chance to enforce legal judgments previously awarded by UK and US courts. The hedge fund declined to comment. . .

US and UK courts have awarded $1.6bn in claims in [Elliott's] favour, but Argentina has taken a tough line on lingering holdouts, saying there will be no further offers.

If a US court ruling from February 23 is upheld on appeal, Argentina must pay interest to Elliott before making any payment to holders of bonds issued in the 2005 and 2010 swaps. An appeals ruling has not yet been issued.

The Libertad, which Elliott expects to be awarded ownership of, has been estimated in value at between $10m and $15m.

The vessel, a tall ship used by the Argentine Navy to train sailors and a former holder of the world speed record for a transatlantic crossing by sail, was on a graduation tour. It is free to leave the Ghanaian port of Tema if Buenos Aires posts a bond with the court, which Elliott would then also seek to recover.

In the long-run, Elliott will still rely on winning court cases to pressure the Argentine government into paying the outstanding loan in cash, rather than boats.

The ARA Libertad in better days. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty
Show Hide image

Levi Bellfield, Milly Dowler and the story of men’s violence against girls

Before she was so inextricably connected to the phone hacking scandal, Milly Dowler was one of many women maimed and killed by a violent man.

The name Milly Dowler has meant phone hacking since July 2011. The month before that, Levi Bellfield (already imprisoned for the murders of Marsha McDonnell and Amelie Delagrange, and the attempted murder of Kate Sheedy) had been convicted of killing her, nine years after her death. But almost immediately, she became the centrepiece of Nick Davies’s investigations into Fleet Street “dark arts”, when it was revealed that News of the World journalists had accessed her voicemail during the search for her.

Suddenly her peers were not McDonnell, Delagrange and Sheedy, but Hugh Grant, Leslie Ash, Sadie Frost, Jude Law. People she could only have known from TV, now her neighbours in newsprint. Victims of a common crime. She had attained a kind of awful fame, and remains much better known than McDonnell, Delagrange and Sheedy.

There is a reason for that: with Milly Dowler, there was hope of finding her alive. Weeks of it, the awful hope of not knowing, the dull months of probability weighing down, until finally, in September 2002, the body. McDonnell, Delagrange and Sheedy were attacked in public places and found before they were missed. It is not such an interesting story as the schoolgirl who vanishes from a street in daylight. Once there were some women, who were killed and maimed by a man. The end.

Even now that Bellfield has confessed to kidnapping, raping and killing Milly, it seems that some people would like to tell any story other than the one about the man who kidnaps, rapes, kills and maims girls and women. There is speculation about what could have made him the kind of monster he is. There must be some cause, and maybe that cause is female.

Detective Chief Inspector Colin Sutton (who worked on the McDonnell and Delagrange murders) has said insinuatingly that Bellfield “dotes on his mother and her on him. It's a troubling relationship.” But it was not Bellfield’s mother who kidnapped, raped, killed and maimed girls and women, of course. He did that, on his own, although he is not the first male killer to be extended the courtesy of blaming his female relatives.

Coverage of the Yorkshire Ripper accused his wife Sonia of driving him to murder. “I think when Sutcliffe attacked his 20 victims, he was attacking his wife 20 times in his head,” said a detective quoted in the Mirror, as if the crimes were not Sutcliffe’s responsibility but Sonia’s for dodging the violence properly due to her. Lady Lucan has been successfully cast by Lucan’s friends as “a nightmare” in order to foster sympathy for him – even though he systematically tried to drive her mad before he tried to kill her, and did kill their children’s nanny, Sandra Rivett. Cherchez la femme. Cherchez la mom.

I know little about Bellfield’s relationship with his mother, but one of his exes spoke about him earlier this year. Jo Colling told how he had terrorised her while they were together, and stalked her after she left. “When I knew he was with another woman and not coming home it was a relief, but now I know what he was capable of, I feel guilty,” she said. “I did get an injunction against him, but it only made him even angrier.”

Colling fears that she could have prevented Bellfield’s murders by going to the police with her suspicions earlier; but since the police couldn’t even protect her, it is hard to see what difference this could have made, besides exposing herself further to Bellfield’s rage. Once there was a woman who was raped, beaten and stalked by the man she lived with. The end. This is a dull story too: Colling’s victimisation is only considered worth telling because the man who victimised her also killed Milly Dowler. Apparently the torture of a woman is only really notable when the man who does it has committed an even more newsworthy crime.

Throughout his engagements with the legal system, Bellfield seems to have contrived to inflate his own importance. Excruciatingly, he withheld his confession to murdering Milly until last year, leaving her family in an agony of unknowing – and then drew the process out even further by implicating an accomplice, who turned out to have nothing at all to do with the crime. He appears to have made the performance into another way to exercise control over women, insisting that he would only speak to female officers about what he did to Milly.

It is good that there are answers for the Dowler family; it is terrible that getting them let Bellfield play at one more round of coercions. And for the rest of us, what does this new information tell us that shouldn’t already be obvious? The story of men’s violence against girls and women is too routine to catch our attention most of the time. One woman killed by a man every 2.9 days in the UK. 88,106 sexual offences in a year.

Once there were some girls and women, who were tortured, stalked, kidnapped, raped, killed and maimed by a man. Dowler, McDonnell, Delagrange, Sheedy, Colling. More, if new investigations lead to new convictions, as police think likely. All those girls and women, all victims of Levi Bellfield, all victims of a common crime that will not end until we pull the pieces together, and realise that the torture, the stalking, the kidnaps, the rapes, the killing and the maiming – all of them are connected by the same vicious logic of gender. Then, and only then, will be able to tell a different story. Then we will have a beginning.

Sarah Ditum is a journalist who writes regularly for the Guardian, New Statesman and others. Her website is here.