December 12, 2011 / 12:45 PM / 8 years ago

Hedge fund Elliott sues Vietnam shipbuilder Vinashin-WSJ

Dec 12 (Reuters) - U.S. hedge fund Elliott Advisers LP has filed a case against Vietnam’s Vinashin in the UK High Court as the state-run shipbuilder defaulted on a syndicated loan last year, the Wall Street Journal said, citing a court filing.

Vinashin defaulted on a $600 million syndicated loan in December last year, when the first repayment of $60 million was due, the newspaper said.

Elliott was part of a group of investors who invested in the loan, including, among others, Credit Suisse AG, Dublin-based Depfa Bank PLC and Malayan Banking Bhd, the paper said. Credit Suisse had arranged the loan in 2007.

According to the filing, which was served in late November, Elliott is suing for par value of its investment, together with unpaid interest and default interest totalling $13.2 million.

The case has been watched closely by investors and analysts as a barometer of Hanoi’s support for its state-owned enterprises ever since the government announced in July that Vinashin, or Vietnam Shipbuilding Industry Group, was nearly bankrupt under about $4.4 billion of debt.

An Elliott spokesperson could not be immediately reached by Reuters for comment. Offices in Vietnam were closed.

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