Business

Paul Singer cheered for nemesis Argentina at World Cup

When Argentina’s soccer team was on the verge of losing to Germany in the World Cup finals in Brazil, a surprise fan was in the bleachers, cheering on the South American country: Paul Singer.

The 69-year-old financier, who studied psychology before getting a Harvard law degree, may have hoped a victory would make it easier for the embattled country to bend in their decade-long debt battle.

Less than three weeks after the Argentina was shut out in the tournament, however, the talks between Argentina and a group of hedge funds led by Singer collapsed and the country defaulted on $15 billion.

Since the default a week ago, the country has remained intransigent. On Thursday, it took its case to the Hague, contending that the US court system has trampled its sovereignty.

The UN Court of Justice is unlikely to hear the case, as the US would have to agree to its jurisdiction. But the latest volley indicates Argentina isn’t backing down.

Meanwhile, Singer’s legal battle over Argentina has taken more than decade of his life, giving him plenty of time to try and understand the Argentine psyche.

That might explain why he showed up at the World Cup wearing an Argentine jersey, according to Bloomberg, just as the country teetered on the brink of default.

The notoriously private Singer may not be alone in taking stock of his opponent. As the saga became an international spectacle, Singer’s hedge fund suspected that one of its people was possibly being followed by an Argentine agent or lawyer, Bloomberg reported.

The stakes are high for both sides. If Singer can collect on all he is owed, his $24 billion Elliott Management could rake in $3 billion, according to Argentina’s estimates — a 1,600 percent return.

Argentina would rather eat dirt. It defaulted on $15 billion of debt July 30 after refusing to pay Singer and his allies, to whom it owed $1.65 billion in one case alone.

US courts ruled that Argentina must repay in full bondholders like Singer who own debt from the country’s first default in 2001, whenever it makes payments to the majority of bondholders who agreed to a debt swap at a discount. July 30 was the deadline for making that payment.

Argentina’s government, led by Cristina Kirchner, has demonized Singer as a “vulture” and vowed never to pay him. As it reached the top court in the US, the case became a polarizing international cause pitting her populist government against uber-capitalist Singer.

Argentina has refused to meet again with mediator Daniel Pollack, calling him biased. Manhattan federal Judge Thomas Griesa is none too pleased; he ordered another hearing on Friday “regarding recent statements” made by Argentina.

International banks have reportedly been trying to broker a deal to buy Singer’s bonds at 80 cents on the dollar. But those plans have been complicated by a slew of “me-too” claims filed by other bondholders seeking the same deal as Singer.