Vulture fund
 Vulture fund    | |
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Vulture funds are usually[clarification needed] a private equity group or fund that buys defaulted debt that belongs to individuals, companies or nations. They tend to be ruthless in pursuing the debt they have purchased, often negating any gains the debtor has made in managing the debt or pursuing debt relief. They often actively engage in corrupt payments to government, paying well connected lobbyists or making large donations to political parties.
Victim nations
Zambia
Romania loaned $40M to Zambia to buy tractors in 1979, in 1999 unable to keep up the payments they negotiated to settle the debt for $3M but before this could happen Debt Advisory International stepped in and purchased the debt for $4M they then commenced to sue for the original amount plus interest.[1]
Peru
In 1996 Paul Elliot Singer purchased Peruvian debt for $11M and then threatened to sue unless he received the full $58M.
Congo
Peter Grossman purchased the Congolese debt for a Bosnian state company, EnergoInvest for $2.6M. He then successfully sued the DRC for $100M.
Argentina
Examples
- Michael Sheehan - Debt Advisory International, Donegal International
- Paul Singer - Elliot Management Corporation - Paul Singer is a major donor to the Republican Party
- Peter Grossman[2] - FG Capital Management
