Dispute between Argentina and American hedge fund over a training ship

By Finance

Buenos Aires — the military intelligence director of Argentina, resigned Thursday, the newest casualty in a dispute among Argentina and an American hedge fund over ownership of an Argentine Navy training ship which is impounded at a port in West Africa.
The Libertad, a 3-mast tall vessel with 330 navy cadets and crew members onboard, was seized at Tema, an industrial port east of Ghana’s capital, Accra, on 2nd of October, 2012 through a court order obtained by, a holdout creditor from Argentina’s default a decade ago which says it is owed over $370 million. The creditor is between a few remaining holdouts to refuse debt restructuring agreements in 2005 and 2010. It had tracked the ship through the Libertad’s Web site.
N.M.L., a subsidiary of Elliot Capital, a hedge fund based in New York with $20 billion under management, suggested to release the vessel if Argentina paid a $20 million security. It also offered to bear the costs of flying the seamen home.
Argentina’s foreign minister, Héctor Timerman, told in a statement, “The vulture funds have crossed a boundary in their attacks on the Argentine republic.” He also stated the seizure violated the Vienna Convention that grants military ships diplomatic immunity.
A judge in Accra ruled last Friday versus that defense, saying Argentina “has in clear terms waived the immunity attributed to the ship” in the contract it signed with N.M.L. Argentina sent a delegation of junior ministers last week to meet with government officials in Ghana. The Foreign Ministry spokesman, Mariano Lapeyre, refused to comment on the continuing talks.
The Libertad set sail in June. Tema was its eleventh port of call in a 6-month voyage to countries on the coasts of the Atlantic Ocean.
Argentina is accruing daily 50,000 dollars berth fees while the Libertad is docked at the Tema port.