22 Oct 2012

Crew ordered to leave navy ship

9:56 am on 22 October 2012

Argentina has ordered over 300 sailors to leave a Navy training ship which was seized by the Ghana earlier this month.

The Libertad has been held under a court order since 2 October in a case over Argentine debts.

Argentina's foreign ministry said the captain and some crew will stay on board.

Creditors say they will not release the ship until Argentina repays money owed to them from a default in 2001.

NML Capital, a subsidiary of Elliot Capital Management, a US hedge fund, says Argentina owes it more than $US300 million. NML will release the ship only if it is paid at least $US20 million.

Argentina defaulted on more than $US100 billion debt in 2001 and 2002. The BBC reports most of the loans were restructured in 2005 and 2010, giving creditors about 30% of their money back.

However, some creditors are still pursuing the government through the courts to recover the full amount.