Gramercy Peruvian Bond Issue Could Be Historic For One Legal Reason

A little known hedge fund milestone occurred yesterday when emerging markets-focused Gramercy filed a $1.6 billion arbitration claim against Peru. The claim is based on 40-year old bonds that the government failed to recognize, an issue previously reported by ValueWalk. What makes the move historic is the legal setting under which the debt dispute will be resolved. Against claims of local judicial corruption, Gramercy left with no choice but to appeal to a higher legal authority The $6.3 billion hedge fund Gramercy had purchased defaulted land bonds in 2006 – bonds that have their origin in cold war history. After…