Gramercy Funds Management LLC is seeking to enter arbitration with Peru over the $1.6 billion it says it’s owed from decades-old defaulted bonds.

The claim for violations under the U.S.-Peru Free Trade Agreement was filed Thursday, according to an e-mailed statement from the Greenwich, Connecticut-based hedge fund. Gramercy had filed notice of its intent to seek arbitration in February.

“Peru’s stonewalling and steadfast refusal to have any substantive discussions has left Gramercy no choice but to commence and vigorously pursue this arbitration and enforce its rights, ” Chief Investment Officer Robert Koenigsberger said in the statement…

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