Peru Asks Court to Throw Out Gramercy Claim for $1.6 Billion
- Gramercy filed a $1.6 billion claim against Peru last month
- Peru says simultaneous legal proceedings break treaty rules
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Peru asked an arbitration tribunal to dismiss a claim from Gramercy Funds Management and said the company violated a trade agreement between the U.S. and Peru when it started proceedings last month.
The Greenwich, Connecticut-based hedge fund filed a claim for $1.6 billion under the U.S.-Peru Free Trade Agreement on June 2 for unpaid land bonds. In a formal response to the claim published Wednesday, Peru denied it violated the treaty and accused Gramercy of flouting the rules by simultaneously pursuing local litigation for the payment of the decades-old debt.