‘Vulture funds’ circle as Greece fears grow – Business News – Business – The Independent

Suomi: Hefaistoksen temppeli Ateenassa, Kreika...

An American tax exile living in the Cayman Islands has emerged as a winner from the chaos engulfing Greece, even as the political and economic turmoil in the beleaguered nation deepened yesterday, with Athens putting a senior judge in charge of an emergency government to lead it to fresh elections.

Kenneth Dart, the Michigan-born heir to a disposable cups fortune, was handed an estimated €400m £320m cheque from Greece this week, after successfully calling the country’s bluff and refusing to take part in the restructuring of government debt that saved Greece from default in the spring.

Amid alarming reports of depositors withdrawing their cash from Greek banks, the government decided it could ill afford a showdown with Mr Dart’s hedge fund, Dart Management, and similar “vulture funds” who have purchased Greek debt and are threatening to sue if the interest payments are not made. Concerns over the state of the nation’s banks have mounted as the odds of a disorderly Greek exit from the eurozone have shortened in recent days, and keeping the financial system sound will be the No 1 priority of Panagiotis Pikramenos, named caretaker Prime Minister after the collapse of coalition talks on Tuesday.

He is charged with steering Greece to new elections on 17 June without incident, although concerns over the risk of financial panic have risen since European political leaders began to speculate that Greece could leave the euro. Moreover, recent opinion polls suggest that anti-bailout parties – in particular the Syriza party led by Alexis Tsipras – could return with a bigger slice of the vote after the June elections.

This already complex picture is further complicated by the role of the vulture funds. Dart Management holds a significant portion of the roughly 5 per cent of Greek debt that was not subject to renegotiation under the terms of its bailout deal, and took a reported 90 per cent of the €436m paid by the Greek government to bondholders on Tuesday. While Mr Dart is still a board member of the family company, Dart Containers, which is America’s largest producer of plastic cups, he has not lived in the country since 1994.

via ‘Vulture funds’ circle as Greece fears grow – Business News – Business – The Independent.

Strange Random Vulture Quote:

“If your friend is already dead, and being eaten by vultures, I think it’s okay to feed some bits of your friend to one of the vultures, to teach him to do some tricks. But only if you’re serious about adopting the vulture.” – Jack Handy (American Writer and cast member of Saturday Night Live from 1991-2003. Famous for his Deep Thoughts comedy sketches.)

 

 

 

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Posted on May 17, 2012, in Article and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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