Editing Distressed securities (section)

===Peru ===
In 1983, [[Peru]] was in economic distress and had large amounts of external debt. In 1996, the nation restructured its debts. The original loans were exchanged for [[Brady Bonds]], dollar-denominated bonds issued in the original amount of the loans. [[Paul Singer (businessman)|Paul Singer]]'s [[Elliott Associates]], a New York-based hedge fund, purchased $20.7 million worth of defaulted loans made to Peru for a discounted price of $11.4 million. Elliott Associates, holding the only portion of Peru's debt remaining outside the restructure, sued Peru and won a $58 million settlement. Unable to pay the $58 million, Peru, continued to repay creditors that held Brady Bonds. Elliott filed an injunction to prevent Peru from paying off its restructured debt without also paying Elliott. It was argued that Peru violated the "[[pari passu]]" clause, which states that no creditor can be given preferential treatment.