Spanish hedge fund threatens to sue over Greek bond losses

Madrid-based hedge fund Vega Asset Management has threatened to take legal action against officials negotiating Greece's debt restructuring if its bond losses turn out to be too deep.

Vega wrote to investors this month to say it would consider suing if Greece insisted on write-downs of more than half the net present value of the debt, reported the FT. "Vega believes that, given the current position of the official sector, a voluntary exchange that implies a NPV loss of 50% or less is not now a likely outcome," Jesús Sáa Requejo, a senior Vega executive, wrote in the letter on December 7. "Vega needs to start considering all available legal options to refuse and challenge any exchange that implies a NPV loss of more than 50%." The asset manager was an original me...