Paul Singer means business regarding Argentina, but we knew that already. After the country defaulted last month for the second time in a decade, Singer and others weren’t going to let the country off the hook so easily. Now subpoenas have been delivered to the Bank of China and the Industrial Commercial Bank of China for information about $6.8 billion in financing between China and Argentina.
The Chinese finances hydroelectric dams in Patagonia and a freight railway project. Singer wants to know all of the details discussed between Argentina’s President, Christina Fernandez and her Chinese counterpart Xi Jinping during the latter’s visit to the Buenos Aires. In addition to loan information, Singer’s Elliott Management is seeking information on any disclosures Argentina made to China about debt obligations. A lawyer representing Elliott Management said, “We think Argentina might have provided some assurances to lenders that they have plans to evade parti passu injunction.”
The Chinese banks have until October to provide information and are required to send representatives to testify. In addition, Eliott Management plans subpoenas for Citigroup. HSBC and Standard Chartered for information about suspected embezzled funds.