BNP Sues Anchorage Capital Over $60 Million Irish Debt Sale

BNP Paribas SA (BNP) sued Anchorage Capital Group LLC in London for agreeing to buy about $60 million worth of Irish bank debt, then failing to pay.

Anchorage Capital, a New York-based investment company, agreed to buy two tranches of Irish Bank Resolution Corp. notes last year, according to court papers filed by BNP in March and made public this week. The Paris-based lender said it transferred the notes to Anchorage in February and hasn’t received any money in return.

Irish Bank Resolution Corp. was created when the former Anglo Irish Bank Corp. and Irish Nationwide Building Society merged in 2011. Ireland ordered the liquidation of the nationalized lender in February as part of a deal to restructure the cost of its bailout.

Luke Streatfeild, a lawyer for BNP Paribas, declined to comment on the suit. Jonathan Gasthalter, a New York-based spokesman for Anchorage, didn’t immediately respond to a phone call seeking comment.

Anchorage manages funds that invest in credit markets in the U.S. and Europe, with a focus on defaulted or highly indebted issuers, according to its website.

The company agreed to pay $31.2 million for the IBRC debt with a face value of $50 million, and $28.1 million for a second tranche originally valued at $45 million, according to BNP’s court documents.

The case is: BNP Paribas SA v. Anchorage Capital Group LLC & Ors, case no. 13-235, High Court of Justice, Queen’s Bench Division.

To contact the reporter on this story: Kit Chellel in London at cchellel@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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