u n ited sta tes d istrict co u rt so u th ern …/media/files/services/...settlem ent itd report...

U N ITED STA TES D ISTR IC T C O U R TSO U TH ER N D ISTR IC T O FN EW Y O R K

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X

N M L C A PITA L ,L TD .,

Plaintiff,

v.

TH ER EPU B L IC O FA R G EN T IN A ,

D efendant.

:

:

:

:

:

:

08C iv.6978(TPG )

SEC O N D A M EN D ED A N DSU PPL EM EN T A L C O M PL A IN T

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X

Plaintiff,N M L C apital,L td.,(“N M L ”),by its undersigned counsel,as and forits

Second A m ended and Supplem ental C om plaint against D efendant R epublic of A rgentina

(“A rgentina”),allegesasfollows:

N A T U R EO FT H EA C T IO N

1. Thisisa breachof contractactionarising from A rgentina’sfailure tom ak e

contractually-m andated principal and interest paym ents oncertainbonds issued by A rgentina

and held by N M L . The bonds inquestionwere issued pursuanttoa Fiscal A gency A greem ent,

dated O ctober19,1994(the “FA A ”)betweenA rgentina and B ank ers TrustC om pany,as Fiscal

A gent. For its relief,N M L seek s paym ent of the principal am ount of the bonds together with

any accrued and unpaid interest,as provided for inthe FA A . A true and accurate copy of the

FA A isattached asExhibitA .

2. Inthispleading,Plaintiff isasserting twoadditional claim sfordeclaratory

and injunctive relief. The twonew claim sconcernbondsbearing ISIN A R A R G E03H 413(the

“B O N A R 2024B onds”)and A rgentina’sotherexisting and future External Indebtedness(other

thanthe Exchange B ondswhichare already the subjectof declaratory and injunctive relief issued

Case 1:08-cv-06978-TPG Document 807 Filed 07/20/15 of 36

2

by thisC ourt). Plaintiff isrequesting:(i)a declaratory judgm entthatthe B O N A R 2024B onds

are External Indebtednesswithinthe m eaning of the FA A ,and (ii)specific perform ance of the

R epublic’sobligationsunderthe Equal Treatm entProvisioninthe FA A by prelim inarily and

perm anently enjoining the R epublic from m ak ing paym entsof interestand/orprincipal onthe

existing and future B O N A R 2024B ondsand otherExternal Indebtednessunlessa “R atable

Paym ent”ism ade inrespectof Plaintiff’sdefaulted bonds.

3. Thisactionalsoseek srelief based onA rgentina’scontinuing breachof the

Equal Treatm ent Provisionof the FA A ,paragraph1(c)of the FA A ,whichprovides for equal

treatm ent interm s of rank and priority of paym ent for holders of bonds issued under the FA A

withrespecttoany unsecured and unsubordinated External Indebtedness as defined inthe FA A

(the “Equal Treatm entProvision”). U ndercolorof L aw 26,017passed in2005and L aw 26,547

passed in2009,A rgentina issued bonds inits 2005 and 2010 B ond Exchanges with paym ent

obligations that rank higher thanthose issued under the FA A and held by N M L . The bonds

issued inthe Exchanges are External Indebtedness.A rgentina’s issuance of these higherrank ing

bonds,its continuing paym entof sem i-annual interesttothe holders of the bonds issued inthe

2005B ond Exchange and itsanticipated paym entof interesttothe holdersof the bondsissued in

the 2010 B ond Exchange,while paying nothing to N M L and other bondholders who did not

participate inthe Exchanges,violate the Equal Treatm ent Provisionof the FA A . To prevent

furtherviolations,N M L seek sspecific enforcem entof the Equal Treatm entProvision.

4. B eginning inM ay 2014,the R epublic beganissuing the B O N A R 2024

B onds and has m ade paym ents on them all while paying nothing to plaintiff and other

bondholders whodid notparticipate inthe 2005and 2010B ond Exchanges— inviolationof the

Equal Treatm entProvision. A ccordingly,torem edy thisviolationand preventfurtherviolations,


3

plaintiff seek s in its N inth C laim for R elief specific enforcem ent of the Equal Treatm ent

Provisionwithrespecttothe B O N A R 2024B onds.

T H EPA R T IES

5. Plaintiff N M L is a corporationorganiz ed and existing under the laws of

the C aym anIslands.

6. D efendant R epublic of A rgentina is a Foreign State as defined in28

U .S.C .§ 1603.

JU R ISD IC T IO N A N D V EN U E

7. This C ourthas jurisdictionoverthis actionpursuantto28U .S.C .§ 1330,

as A rgentina is a ForeignState which has explicitly and unconditionally waived sovereign

im m unity withrespecttoactions arising outof the FA A by holders of bonds issued thereunder

and is,therefore,notentitled toim m unity under28U .S.C .§ § 1605-07orunderany applicable

international agreem ent.

8. Inaddition,A rgentina consented inthe FA A tosubm ittothe jurisdiction

of thisC ourtinrespecttoactionsarising outof the FA A orbondsissued thereunder. Pursuantto

Section22of the FA A ,A rgentina appointed B ancode la N ació nA rgentina,299Park A venue,

N ew Y ork ,N ew Y ork 10171,as its authoriz ed agent forservice of process. Section23of the

FA A provides thatthe FA A shall be “governed by,and interpreted inaccordance with,the laws

of the State of N ew Y ork .”

9. V enue isproperinthisdistrictby agreem entof the partiesand pursuantto

28U .S.C .§ 1391(f).

FA C T U A L A L L EG A T IO N S

The 11% G lobal B onds


4

10. Plaintiff is the holderof $225,000principal am ountof 11% G lobal B onds

issued by the R epublic of A rgentina,C U SIP N o.040114A N 0(the “11% B onds”). A true and

correct copy of the JP M organG lobal Settled H oldings C O B R eport,dated O ctober 13,2010,

whichshows Plaintiff’s current ownership of $9,698,000principal am ount of the 11% B onds,

am ong other bonds issued by A rgentina,is attached as Exhibit B . The $9,698,000 principal

am ountof 11% B onds referenced inExhibitB includes: (1)the $225,000principal am ountof

11% B onds atissue inthisaction;(2)the $6,031,000principal am ountof 11% B onds atissue in

NML Capital, Ltd. v. The Republic of Argentina,brought inthe C ourt as action07C iv.1910

(TPG )and (3)the $3,442,000principal am ountof 11% B onds atissue inNML Capital, Ltd. v.

The Republic of Argentina,broughtinthisC ourtasaction09C iv.1708.

11. Plaintiff acquired $225,000of the 11% B ondsinone transactiononJuly 7,

2008. A true and correctcopy of the C onsolidated Settlem ent ITD R eportstatem ents showing

Plaintiff’s purchase of the 11% B onds,am ong other bonds issued by A rgentina,is attached as

ExhibitC .

12. The 11% B onds are a Series of Securities under the term s of the

A greem ent.

13. The 11% B onds m atured onO ctober 9,2006,at which tim e the entire

principal am ountof the 11% B ondsbecam e due and payable.

The 11.75% G lobal B onds

14. Plaintiff is the holderof $11,290,000principal am ountof 11.75% G lobal

B onds issued by the R epublic of A rgentina,C U SIP N o.040114B E9(the “11.75% B onds”). A

true and correctcopy of the JP M organG lobal Settled H oldings C O B R eport,dated O ctober13,

2010,whichshowsPlaintiff’scurrentownershipof $27,989,000principal am ountof the 11.75%


5

B onds,am ong other bonds issued by A rgentina,is attached as Exhibit B . The $27,989,000

principal am ount of 11.75% B onds referenced inExhibit B includes: (1)the $11,290,000

principal am ountof 11.75% B ondsatissue inthisaction;(2)the $1,360,000principal am ountof

11.75% B onds atissue inNML Capital, Ltd. v. The Republic of Argentina,broughtinthis C ourt

as action07 C iv. 1910 (TPG )and (3)the $15,339,000 principal am ount of 11.75% B onds at

issue inNML Capital, Ltd. v. The Republic of Argentina,broughtinthis C ourtas action09C iv.

1708.

15. Plaintiff acquired $11,290,000of the 11.75% B onds infive transactions:

$100,000onJuly 7,2008,$690,000onJuly 8,2008,$5,000,000onJuly 10,2008,$500,000on

July 14,2008and $5,000,000onJuly 24,2008. A true and correct copy of the C onsolidated

Settlem ent ITD R eport statem ents showing Plaintiff’s purchase of the 11.75% B onds,am ong

otherbondsissued by A rgentina,isattached asExhibitC .

16. The 11.75% B ondsare a Seriesof Securitiesunderthe term sof the FA A .

17. The 11.75% B ondsm atured onA pril 7,2009.


18. Plaintiff isthe holderof $10,260,000principal am ountof 11.375% G lobal

B onds issued by the R epublic of A rgentina,C U SIP N o.040114FC 9(the “11.375% % B onds”).

A true and correctcopy of the JP M organG lobal Settled H oldings C O B R eport,dated O ctober

13,2010,which shows Plaintiff’s current ownership of $22,005,000 principal am ount of the

11.375% B onds,am ong other bonds issued by A rgentina,is attached as Exhibit B . The

$22,005,000 principal am ount of 11.375% B onds referenced inExhibit B includes: (1)the

$10,260,000 principal am ount of 11.375% B onds at issue inthis action;(2)the $6,280,000

principal am ountof 11.375% B onds atissue inNML Capital, Ltd. v. The Republic of Argentina,


6

broughtinthis C ourtas action07C iv.1910(TPG )and (3)the $5,465,000principal am ountof

11.375% B ondsatissue inNML Capital, Ltd. v. The Republic of Argentina,broughtinthisC ourt

asaction09C iv.1708.

19. Plaintiff acquired $10,260,000of the 11.375% B onds intwotransactions:

$260,000onJuly 7,2008and $10,000,000 onJuly 21,2008. A true and correct copy of the

C onsolidated Settlem ent ITD R eport statem ents showing Plaintiff’s purchase of the 11.375%

B onds,am ong otherbondsissued by A rgentina,isattached asExhibitC .


21. The 11.375% B ondsm atured onM arch15,2010.


22. Plaintiff isthe holderof $10,500,000principal am ountof 12.375% G lobal

B ondsissued by the R epublic of A rgentina,C U SIP N o.040114G D 6(the “12.375% B onds”). A


2010,which shows Plaintiff’s current ownership of $20,429,000 principal am ount of the

12.375% B onds,am ong other bonds issued by A rgentina,is attached as Exhibit B . The

$20,429,000 principal am ount of 12.375% B onds referenced inExhibit B includes: (1)the

$10,500,000 principal am ount of 12.375% B onds at issue inthis action;(2)the $1,720,000

principal am ountof 12.375% B onds atissue inNML Capital, Ltd. v. The Republic of Argentina,

broughtinthis C ourtas action07C iv.1910(TPG )and (3)the $8,209,000principal am ountof

12.375% B ondsatissue inNML Capital, Ltd. v. The Republic of Argentina,broughtinthisC ourt

asaction09C iv.1708.

23. Plaintiff acquired $10,500,000of the 12.375% B onds intwotransactions:

$500,000onJuly 14,2008and 10,000,000 onJuly 24,2008. A true and correct copy of the


7

C onsolidated Settlem ent ITD R eport statem ents showing Plaintiff’s purchase of the 12.375%

B onds,am ong otherbondsissued by A rgentina,isattached asExhibitC .


25. The 12.375% B ondsm ature onFebruary 21,2012.

The 11-3/8% G lobal B onds

26. Plaintiff is the holderof $42,155,000principal am ountof 11-3/8% G lobal

B onds issued by the R epublic of A rgentina,C U SIP N o.040114A R 1(the “11-3/8% B onds”). A


2010,which shows Plaintiff’s current ownership of $71,788,000 principal am ount of the 11-

3/8% B onds,am ong otherbondsissued by A rgentina,isattached asExhibitB . The $71,788,000

principal am ount of 11-3/8% B onds referenced inExhibit B includes: (1)the $42,155,000

principal am ountof 11-3/8% B onds atissue inthis action;(2)the $14,332,000principal am ount

of 11-3/8% B onds at issue inNML Capital, Ltd. v. The Republic of Argentina,brought inthis

C ourtasaction07C iv.1910(TPG )and (3)the $15,301,000principal am ountof 11-3/8% B onds

at issue inNML Capital, Ltd. v. The Republic of Argentina,brought inthis C ourt as action09

C iv.1708.

27. Plaintiff acquired $42,155,000of the 11-3/8% B onds insixtransactions:

$2,000,000onJune 9,2008,9,000,000onJune 24,2008,5,000,000onJune 27,2008,2,500,000

onJune 30,2008,8,000,000 onJuly 15,2008 and 15,655,000 onJuly 18,2008. A true and

correctcopy of the C onsolidated Settlem entITD R eportstatem entsshowing Plaintiff’s purchase

of the 11-3/8% B onds,am ong otherbondsissued by A rgentina,isattached asExhibitC .

28. The 11-3/8% B ondsare a Seriesof Securitiesunderthe term sof the FA A .

29. The 11-3/8% B ondsm ature onJanuary 30,2017.


8

The 12% G lobal B onds

30. Plaintiff is the holder of $1,100,000 principal am ount of 12% G lobal

B onds issued by the R epublic of A rgentina,C U SIP N o.040114FB 1(the “12% B onds”). A true

and correct copy of the JP M organG lobal Settled H oldings C O B R eport,dated O ctober 13,

2010,whichshows Plaintiff’s current ownership of $61,942,000 principal am ount of the 12%


principal am ountof 12% B onds referenced inExhibitB includes: (1)the $1,100,000principal

am ount of 12% B onds at issue inthis action;(2)the $60,244,000 principal am ount of 12%

B ondsatissue inNML Capital, Ltd. v. The Republic of Argentina,broughtinthisC ourtasaction

03C iv.8845(TPG );(3)the $300,000principal am ountof 12% B onds atissue inNML Capital,

Ltd. v. The Republic of Argentina,broughtinthisC ourtasaction07C iv.6563(TPG )and (4)the

$298,000 principal am ount of 12% B onds at issue inNML Capital, Ltd. v. The Republic of

Argentina,broughtinthisC ourtasaction09C iv.1708.

31. Plaintiff acquired $1,100,000of the 12% B ondsinone transactiononJuly

16,2008. A true and correct copy of the C onsolidated Settlem ent ITD R eport statem ents

showing Plaintiff’s purchase of the 12% B onds,am ong other bonds issued by A rgentina,is

attached asExhibitC .

32. The 12% B ondsare a Seriesof Securitiesunderthe term sof the FA A .

33. The 12% B ondsm ature onFebruary 1,2020.


34. Plaintiff is the holder of $5,550,000 principal am ount of 9.75% G lobal

B onds issued by the R epublic of A rgentina,C U SIP N o.040114A V 2(the “9.75% B onds”). A



9

2010,whichshows Plaintiff’s currentownershipof $26,438,000principal am ountof the 9.75%


principal am ountof 9.75% B ondsreferenced inExhibitB includes:(1)the $5,550,000principal

am ount of 9.75% B onds at issue inthis action;(2)the $4,598,000principal am ount of 9.75%

B onds thatis atissue inNML Capital, Ltd. v. The Republic of Argentina,07C iv.1910;and (3)

the $16,290,000principal am ountof 9.75% B ondsatissue inNML Capital, Ltd. v. The Republic

of Argentina,broughtinthisC ourtasaction09C iv.1708.

35. Plaintiff acquired $5,550,000 of the 9.75% B onds infour transactions:

$600,000onJuly 7,2008,1,000,000onJuly 15,2008,2,000,000onJuly 17,2008and 1,950,000

onJuly 21,2008. A true and correctcopy of the C onsolidated Settlem entITD R eportstatem ents

showing Plaintiff’s purchase of the 9.75% B onds,am ong other bonds issued by A rgentina,is

attached asExhibitC .


37. The 9.75% B ondsm ature onSeptem ber19,2027.

The R epublic of A rgentina’sD efault

38. Pursuant to Section12 of the FA A ,the following occurrences,am ong

others,constitute Eventsof D efault:

(a)N on-Paym ent: the R epublic fails topay any principal am ountof any of the Securitiesof suchSerieswhendue orpayable orfailsto pay any interest onany of the Securities of such Series whendue and payable and suchfailure continuesfora period of 30days;or

* * *

(d)M oratorium : a m oratorium onthe paym entof principal of,orintereston,the Public External Indebtedness of the R epublic shallbe declared by the R epublic.


10

39. U ponthe occurrence of anEventof D efaultdescribed inSection12(a)or

12(d)of the FA A ,Section12furtherprovides thateachbondholderm ay,by notice inwriting to

the office of the Fiscal A gent,declare the principal am ountof the bondsheld by ittobe due and

payable im m ediately,togetherwithall accrued and unpaid interest.

40. O nD ecem ber24,2001,A rgentina declared a m oratorium onthe paym ent

of principal and interestwithrespecttoall of itsforeigndebt.

41. Since then,A rgentina hasfailed tom ak e paym entsof interestowed onthe

11% B onds,the 11.75% B onds,the 11.375% B onds,the 12.375% B onds,the 11-3/8% B onds,

the 12% B onds,orthe 9.75% B onds.

42. A rgentina failed tom ak e the interestpaym ents due onthe 11% B onds on

A pril 9,2002,O ctober9,2002,A pril 9,2003,O ctober9,2003,A pril 9,2004,O ctober9,2004,

A pril 9,2005,O ctober9,2005,A pril 9,2006,O ctober9,2006,A pril 9,2007,O ctober9,2007,

A pril 9,2008,O ctober9,2009,A pril 9,2009,O ctober9,2009,A pril 10,2010and O ctober9,

2010,asrequired by the term sof the 11% B onds.

43. A rgentina failed tom ak e the interestpaym ents due onthe 11.75% B onds

onA pril 7,2002,O ctober 7,2002,A pril 7,2003,O ctober 7,2003,A pril 7,2004,O ctober 7,

2004,A pril 7,2005,O ctober7,2005,A pril 7,2006,O ctober7,2006,A pril 7,2007,O ctober7,

2007,A pril 7,2008,O ctober7,2008,A pril 7,2009,O ctober7,2009,A pril 7,2010and O ctober

7,2010,asrequired by the term sof the 11.75% B onds.

44. A rgentina failed tom ak e the interestpaym entsdue onthe 11.375% B onds

onM arch15,2002,Septem ber15,2002,M arch15,2003,Septem ber15,2003,M arch15,2004,

Septem ber 15,2004,M arch 15,2005,Septem ber 15,2005,M arch 15,2006,Septem ber 15,

2006,M arch15,2007,Septem ber 15,2007,M arch15,2008,Septem ber 15,2008,M arch15,


11

2009,Septem ber15,2009,M arch15,2010and Septem ber15,2010,asrequired by the term sof

the 11.375% B onds.

45. A rgentina failed tom ak e the interestpaym entsdue onthe 12.375% B onds

onFebruary 21,2002,A ugust21,2002,February 21,2003,A ugust21,2003,February 21,2004,

A ugust 21,2004,February 21,2005,A ugust 21,2005,February 21,2006,A ugust 21,2006,

February 21,2007,A ugust 21,2007,February 21,2008,A ugust 21,2008,February 21,2009,

A ugust 21,2009,February 21,2010 and A ugust 21,2010,as required by the term s of the

12.375% B onds.

46. A rgentina failed tom ak e the interestpaym ents onthe 11-3/8% B onds on

January 30,2002,July 30,2002,January 30,2003,July 30,2003,January 30,2004,July 30,

2004,January 30,2005,July 30,2005,January 30,2006,July 30,2006,January 30,2007,July

30,2007,January 30,2008,July 30,2008,January 30,2009,July 30,2009,January 30,2010

and July 30,2010,asrequired by the term sof the 11-3/8% B onds.

47. A rgentina failed tom ak e the interestpaym ents due onthe 12% B onds on


A ugust 25,2004,February 25,2005,A ugust 25,2005,February 25,2006,A ugust 25,2006,


A ugust25,2009,February 25,2010and A ugust25,2010,as required by the term s of the 12%

B onds.

48. A rgentina failed to m ak e the interest paym ents due onthe 9.75% B onds

onM arch19,2002,Septem ber19,2002,M arch19,2003,Septem ber19,2003,M arch19,2004,

Septem ber 19,2004,M arch 19,2005,Septem ber 19,2005,M arch 19,2006,Septem ber 19,

2006,M arch19,2007,Septem ber 19,2007,M arch19,2008,Septem ber 19,2008,M arch19,


12

2009,Septem ber19,2009,M arch19,2010and Septem ber19,2010,asrequired by the term sof

the 9.75% B onds.

The R epublic of A rgentina’sV iolationsof the Equal Treatm entProvision

49. The FA A containsanEqual Treatm entProvisionwhichstates:

a. The Securities will constitute… direct, unconditional,unsecured and unsubordinated obligationsof the R epublic … .T he paym ent obligations of the R epublic under theSecuritiesshall atall tim esrank atleastequally withall ofother present and future unsecured and unsubordinatedExternal Indebtedness(asdefined inthisA greem ent).

FA A at¶1(c)(em phasissupplied).

50. A ccording toitsplainlanguage,the Equal Treatm entProvisionm eansthat

A rgentina m ay not m ak e a paym ent to a holder of External Indebtedness without a ratable

paym entbeing m ade atthe sam e tim e toN M L .

51. A sthe Second C ircuithasheld,the firstsentence of the Equal Treatm ent

Provision“prohibitsA rgentina,asbond issuer,from form ally subordinating the bondsby issuing

superiordebt.The second sentence ...prohibitsA rgentina,asbond payor,from paying onother

bondswithoutpaying onthe FA A B onds.” NML Capital, Ltd. v. Republic of Argentina,699

F.3d 246,259(2d C ir.2012).

52. In2005,A rgentina restructured itsdebtby offering a bond exchange toall

holdersof non-perform ing external debt(the “2005Exchange”).

53. H olders of approxim ately 25% of A rgentina’s external debt did not

participate inthe 2005Exchange (“N on-tendering B ondholders”).

54. N M L did notparticipate inthe 2005Exchange.

55. B ondholders who participated in the 2005 Exchange received bonds

scheduled topay sem i-annual interest.


13

56. In2005,A rgentina beganm ak ing sem i-annual interestpaym entstoholders

of bondsissued inthe 2005Exchange (suchbonds,the “2005Exchange B onds,”and such

holders,the “2005Exchange B ondholders”).

57. A rgentina paid all subsequent interest due onthe 2005Exchange B onds

until the paym ent that cam e due onJune 30,2014. O nJune 26,2014A rgentina attem pted to

initiate paym enttocertainholdersof 2005Exchange B ondsby transm itting fundstothe B ank of

N ew Y ork M ellon(“B N Y ”)as trustee. B y reasonof O rders issued by the C ourt,B N Y did not

furthertransm itthese funds toholders of the 2005Exchange B onds. NML Capital, Ltd v. The

Republic of Argentina,N o.08C iv.6978(TPG )(S.D .N .Y .A ug.6,2014)(EC FN o.633).U pon

inform ationand belief,A rgentina intends tocontinue paying orattem pting topay interestonall

2005B ondsasitbecom esdue.

58. To facilitate the 2005 B ond Exchange,the Senate and C ham ber of

D eputiesof the A rgentine N ationpassed L aw 26,017(“the L ock L aw”)onFebruary 9,2005. A

copy of L aw 26,017and a certified translationare annexed heretoasExhibitD .

59. Inits January 28,2010Prospectus,A rgentina explained the purpose and

effectof the L ock L aw asfollows:

Inaneffort to reassure tendering B ondholders and increase thelevel of participation on the 2005 debt exchange,C ongresssubsequently passed L aw 26,017,k nownas the “L ock L aw.” TheL ock L aw prohibited the Executive B ranch from reopening theD ebt Exchange without C ongressional approval and alsoprohibited any type of settlem ent involving untenderedsecurities that were eligible to participate inthe 2005 D ebtExchange… .

(Em phasissupplied).

60. The assurances to tendering bondholders provided by L aw 26,017

facilitated A rgentina’scom pletionof the 2005B ond Exchange.


14

61. A rticle 1 of L aw 26,017 provided that B onds not tendered inthe 2005

Exchange would be subjecttothe following provisions:

a. A rticle 2 –The national Executive Power m ay not,withrespect to the bonds referred to inA rticle 1 of this law,reopenthe swapprocess established inthe aforem entionedD ecree N o.1735/04.

b. A rticle 3 - The national State shall be prohibited fromconducting any type of in-court,out-of-court or privatesettlem entwithrespecttothe bonds referred toinA rticle 1of thislaw.

c. A rticle 4- The national Executive Powerm ust–withinthefram ework of the term s of the issuance of the respectivebonds,and the applicable laws and regulations in thecorresponding jurisdictions – order the pertinentadm inistrative acts and fulfill the necessary procedures torem ove the bonds referred tointhe preceding article fromlisting onall dom estic and foreignsecurities m ark ets andexchanges.

62. In2009,inpreparationforanotherbond exchange in2010,the Senate and

C ham ber of D eputies of the A rgentine N ationpassed L aw N o. 26,547 which,am ong other

things,suspended the L ock L aw forpurposes of the 2010Exchange.A copy of L aw 26,547and

a certified translationare annexed heretoasExhibitE.

63. L aw 26,547provided:

a. A rticle 1. The operationof A rticles2,3,and 4of L aw N o.26,017is suspended until 31D ecem ber 2010,or until theN ational Executive B ranch,through the M inistry ofEconom y and Public Finance,declares that the process ofrestructuring the public instrum ents covered by said law iscom pleted,whicheveroccursfirst.

b. A rticle 3. The financial term s and conditions thatm ay beoffered m ay notbe equal toorbetterthanthose offered tocreditors inthe debt restructuring established by D ecreeN o.1735/04.

c. A rticle 5. It is forbiddento offer to the holders of publicdebt that have brought judicial, adm inistrative, or


15

arbitration proceedings or any other type of proceedingtreatm ent m ore favorable thanthe treatm ent afforded toholderswhodid notbring suchproceedings.

64. The prospectusforA rgentina’s2010Exchange stated:

Eligible Securitiesindefaultthatare notexchanged pursuanttotheInvitationm ay rem ainindefaultindefinitely. Inlightof itsfinancialand legal constraints,Argentina does not expect to resume paymentson any eligible Securities in default that remain outstanding followingthe expiration of the Invitation. A rgentina hasopposed vigorously,and intendstocontinue tooppose,attem ptsby holderswhodid notparticipate initspriorexchange offerstocollectonitsdefaulted debtthrough...litigation... and otherlegal proceedingsagainstA rgentina. A rgentina rem ainssubjecttosignificantlegal constraintsregarding itsdefaulted debt....C onsequently,if you electnottotenderyourEligible Securitiesindefaultpursuanttothe Invitationthere can be no assurance that youwill receive any future payments or be able to collect throughlitigation in respect of your Eligible Securities in default.

65. N M L did notparticipate inthe 2010Exchange (N M L and otherA rgentine

bond holdersthatparticipated inneitherthe 2005Exchange northe 2010Exchange,the “N on-

tendering B ondholders”).

66. In2013,A rgentina enacted L aw 26,886purportedly toreopenthe bond

exchange onthe sam e term sthathad beenrepeatedly rejected by plaintiff. W hile L aw 26,886

suspendscertainprovisionsof the L ock L aw,thissuspensionhasnopractical effect,because

L aw 26,886“forbid[s]”A rgentina from paying N M L according toitscontract,and only allows

A rgentina topay N M L onterm sthatare no“m ore favorable”thanthe term sof the original

Exchange O ffer. A copy of L aw 26,886and a certified translationare annexed heretoasExhibit

F.

67. A rgentine courtshave held thatthe L ock L aw and the M oratorium prevent

them from recogniz ing and enforcing N on-tendering B ondholders’ N ew Y ork judgm ents.


16

68. A rgentina violated the Equal Treatm entProvisionof the FA A by relegating

N M L ’sB ondstoa non-paying classpursuanttoL aw 26,517.

69. In2010,A rgentina beganm ak ing sem i-annual interestpaym entstoholders

of bondsissued inthe 2010Exchange (suchbonds,the “2010Exchange B onds,”and such

holders,the “2010Exchange B ondholders.”).

70. A rgentina paid all interestdue onthe 2010Exchange B ondsuntil the

paym entdue onJune 30,2014. O nJune 26,2014A rgentina attem pted toinitiate paym entto

certainholdersof 2010Exchange B ondsby transm itting fundstoB N Y astrustee. B y reasonof

O rdersissued by the C ourt,B N Y did notfurthertransm itthose fundstoholdersof the 2010

Exchange B onds. NML Capital, Ltd v. The Republic of Argentina,N o.08C iv.6978(TPG )

(S.D .N .Y .A ug.6,2014)(EC FN o.633).

71. U poninform ationand belief,A rgentina intendstocontinue paying or

attem pting topay interestonall 2010Exchange B ondsasitbecom esdue.

72. U poninform ationand belief,A rgentina will continue topay nothing to

N M L .

73. N M L and the other non-tendering bondholders have beendam aged as a

result of these violations and will continue to be dam aged by the continuing violations of the

Equal Treatm entProvision.

74. In O ctober 2010,N M L sought specific perform ance of the Equal

Treatm entProvisioninthisand twootherpre-judgm entcases.1

75. O n D ecem ber 7,2011,the C ourt held that A rgentina’s actions,as

described inparagraphs 56-71,supra,violated the Equal Treatm ent Provisionof the FA A and

1 NML Capital, Ltd v. The Republic of Argentina 08C iv.6978,09C iv.1707,09C iv.1708(“Pre-judgm entC ases”).


17

granted partial sum m ary judgm ent to N M L onclaim s for specific perform ance of the Equal

Treatm entProvision. A true and correctcopy of the C ourt’sD ecem ber7,2011O rderisannexed

heretoasExhibitG .

76. O nFebruary 23,2012,the C ourt:

a. held that N M L had no adequate rem edy at law and that,

absentequitable relief,N M L would sufferirreparable harm ;

b. held thatthe equitiesstrongly supported injunctive relief;

c. held that A rgentina had the financial wherewithal to m eet

itspaym entobligationstoN M L inthose cases;and

d. issued an injunction to rem edy A rgentina’s continuing

violations of the Equal Treatm entProvision,whichrequired A rgentina to

specifically perform its obligations under the Equal Treatm ent Provision

by m ak ing ratable paym ent to N M L whenever it paid the 2005 or 2010

Exchange B ondholdersthe am ountsdue ontheirbonds.

77. A true and correctcopy of the C ourt’sFebruary 23,2012O rderisannexed

heretoasExhibitH .

78. O nO ctober 26,2012,the Second C ircuit affirm ed the C ourt’s February

23,2012O rder,butrem anded the injunctionforclarification. NML Capital, Ltd v. The Republic

of Argentina,N o.12-105(L )(2d C ir.O ct.26,2012)(EC FN o.442).

79. A lthough the Second C ircuit’s judgm ent was not final,A rgentina

petitioned fora writof certioraritothe U nited States Suprem e C ourtonO ctober7,2013. The

petitionwasdenied. Republic of Argentina v. NML Capital, Ltd., et al.,N o.12-1494(S.C t.O ct.

7,2013).


18

80. O nN ovem ber 21,2012,the C ourt issued anA m ended O rder requiring

A rgentina tospecifically perform itsobligationsunderthe Equal Treatm entProvisionby m ak ing

ratable paym ent to N M L whenever it paid the 2005 and 2010 Exchange B ondholders the

am ounts due ontheirbonds. A true and correctcopy of the C ourt’s N ovem ber21,2012O rder

(the “A m ended February 23O rder”)isannexed heretoasExhibitI.

81. Inresponse tothe O rders of the C ourtand the affirm ances of the Second

C ircuit inN M L ’s Pre-judgm ent C ases,A rgentine officials,including President K irchner,have

repeatedly stated thatA rgentina hasnointentionof everpaying N M L .

82. For exam ple,inN ovem ber 2012,after the Second C ircuit affirm ed the

February 23,2012O rderand rem anded the injunctionforclarification,PresidentK irchnerstated

thatA rgentina wasgoing topay the Exchange B onds,but“notone dollartothe ‘vulture funds.’”

83. D uring the oral argum ent of the appeal from the C ourt’s A m ended

February 23O rder,A rgentina’scounsel told the Second C ircuitC ourtof A ppealsthatA rgentina

would notvoluntarily obey any orderrequiring ratable paym enttoN M L .

84. O nA ugust23,2013,the Second C ircuitaffirm ed the A m ended February

23 O rder. NML Capital, Ltd v. The Republic of Argentina,N o. 12-105(L )(2d C ir. A ug. 23,

2012)(EC FN o.1001).

85. Shortly thereafter,President K irchner announced that A rgentina would

offer a new bond exchange that would replace the N ew Y ork law-governed Exchange B onds

withnew bonds governed by A rgentine law and payable inA rgentina. This planto evade the

rulings of U nited States courts evidences A rgentina’s continuing intentionnot to fulfill its

obligationspursuanttothe Equal Treatm entProvision.


19

86. A rgentina subsequently filed another petition for a writ of certiorari,

seek ing review by the Suprem e C ourt of the Second C ircuit’s affirm ance of the A m ended

February 23 O rder. That petitionwas also denied. Exchange Bondholder Group v. NML

Capital, Ltd., et al.,N o.13-991(S.C t.June 16,2014).

87. A fter this second petitionfor writ of certiorariwas denied,A rgentina’s

Econom y M inister A xel K icillof announced a plan— nearly identical to the planannounced in

A ugust 2013 by President K irchner— to evade the C ourt’s A m ended February 23 O rder by

swapping the Exchange B onds for new bonds payable inA rgentina and outside the C ourt’s

reach.

88. O nJune 20,2014,the C ourtprom ptly issued anO rderruling thatM inister

K icillof’sproposed bond swapwasinviolationof the C ourt’sO rders. A true and correctcopy of

the C ourt’sJune 20,2014O rderisannexed heretoasExhibitJ.

89. Sixdays later,onJune 26,2014,A rgentina attem pted toinitiate paym ent

to certainholders of the Exchange B onds by transm itting funds to B N Y as trustee,without

m ak ing ratable paym enttoN M L .

90. O nA ugust 6,2014,the C ourt issued anO rder finding that the June 26,

2014paym entby A rgentina toB N Y was illegal and inviolationof the C ourt’s previous O rders.

A true and correctcopy of the C ourt’sA ugust6,2014O rderisannexed heretoasExhibitK .

91. A rgentina’s President K irchner subsequently announced that A rgentina

would enact legislationto change the m anner inwhich it m ak es paym ents onthe Exchange

B onds,such that B N Y would be rem oved as trustee for certain Exchange B onds and all

Exchange B ondswould be paid from a single accountinA rgentina througha financial institution

called Nación Fideicomisos thatA rgentina controls. A rgentina has tak ensteps tocarry outthis


20

plan. The “L egal N otice”published inThe N ew Y ork Tim esonSeptem ber22,2014,isattached

as ExhibitL hereto. These actions are anotherattem ptby A rgentina toevade the rulings of the

C ourtand tofloutitsobligationsunderthe Equal Treatm entProvision.

92. A sa resultof these flagrantand unlawful activities,N M L m oved by order

toshow cause tohold A rgentina incivil contem ptof court. O nSeptem ber29,2014,the C ourt

issued anO rderholding A rgentina incivil contem pt;and onO ctober3,2014,the C ourtissued an

A m ended and Supplem ental O rder regarding A rgentina’s civil contem pt. A true and correct

copy of the C ourt’s Septem ber29,2014O rder is annexed hereto as ExhibitM ,and a true and

correctcopy of the C ourt’sO ctober3,2014O rderisannexed heretoasExhibitN .

93. Since M ay 2014,the R epublic beganissuing bonds the “B O N A R 2024

B onds,which lik e the bonds issued inthe 2005 and 2010 B ond Exchanges are also External

Indebtedness. A rgentina has m ade paym ents onthe B O N A R 2024B onds,and oninform ation

and belief,itwill continue tom ak e paym entsonand issue m ore B O N A R 2024B onds–all while

paying nothing to N M L and other bondholders who did not participate inthe 2005 and 2010

B ond Exchanges–inviolationof the Equal Treatm entProvision.

94. In M ay 2014,A rgentina initially offered and eventually issued $3.25

billionof B O N A R 2024B onds tothe Spanishoil com pany,R epsol S.A .,tosettle claim sR epsol

had asserted againstA rgentina,including claim spending inN ew Y ork and Spanishcourts.

95. A rgentina structured the offer to facilitate the issuance of the B O N A R

2024 B onds to R epsol and other international investors. A s part of the settlem ent agreem ent

with R epsol,A rgentina agreed that the B O N A R 2024 B onds would clear through Euroclear,

which would m ak e the bonds m ore attractive to international investors. JPM organ also

conducted a “shadow book building process”to ensure that the bonds could be im m ediately


21

distributed to international investors interested inpurchasing the newly-issued B O N A R 2024

B onds im m ediately after R epsol received those bonds. A ccordingly,just days after A rgentina

delivered the B O N A R 2024 B onds,R epsol sold them all to JPM organ Securities PL C ,

JPM organ’s L ondon-based brok er-dealer. Since their original issuance,the B O N A R 2024

B ondshave beenactively traded inthe over-the-counterm ark etinthe U nited States.

96. In D ecem ber,2014,A rgentina issued approxim ately $650 m illion

additional B O N A R 2024 B onds. A pproxim ately $380 m illionof these B O N A R 2024 B onds

offered inD ecem ber2014were issued inexchange forB O D EN 2015bonds,withthe resta new

issuance of bonds.

97. InFebruary 2015,A rgentina planned toissue m ore B O N A R 2024B onds

throughanunderwriting by JPM organand D eutsche B ank .

98.


22

99.

100. A rgentina “suspended”the issuance onFebruary 26,2015,afterthisC ourt

com pelled JPM organand D eutsche B ank to provide discovery about the transaction,

A rgentina resum ed the issuance process by announcing onA pril 21 that it would issue m ore

B O N A R 2024B onds,ina transactionthatwould settle justtwodayslater.

101. A s ithad since February,D eutsche B ank continued toplay a k ey role in

the offering,again,oninform ationand belief,as A rgentina’sagentorinconcertwithA rgentina.

D eutsche B ank ’s N ew Y ork syndicate desk im m ediately notified investors that it was tak ing

orders.

The Spanish


23

bank B B V A alsoaccounted fora m ajorportionof the B O N A R 2024B onds issued inA pril. In

all,A rgentina sold over$1.4billionprincipal am ountof B O N A R 2024B onds inthe A pril 2015

issuance,the m ajority of whichwasplaced by D eutsche B ank .

102. A rgentina tried tocreate a false appearance thatthe B O N A R 2024B onds

issued inA pril 2015 were offered exclusively withinA rgentina. A s anexam ple,A rgentina

announced that orders could only be placed through a lengthy list of eligible institutional

purchasersinA rgentina.

103. In reality,affiliates of international bank s purchased and re-sold

internationally alm ostthe entire offering.

104. N otwithstanding these efforts to disguise the nature of the A pril 2015

issuance,A rgentina targeted international investors and took regulatory steps toencourage their

participation. For exam ple,A rgentina enacted regulatory changes which m ade it easier for

foreignpurchasers toreceive theirbonds. M oreover,onthe day A rgentina accepted bids forthe

offering,the B uenos A ires Securities M ark et,“M erval,”issued a notice to its agents that they

could “use transfers toM erval’s account[in]N Y as a m eans of paym ent”forthe B O N A R 2024

B onds. A lm ost all of the bonds were sold to international investors. A rgentina’s leaders then

publicly trum peted the offering as evidence of A rgentina’s ability to tap into the international

m ark ets.

105. Since M ay 2014,A rgentina has issued approxim ately $5.3 billion of

B O N A R 2024B onds.

106. Inviolationof its obligations underthe Equal Treatm entProvisionof the

FA A ,A rgentina m ade its firstpaym entonthe B O N A R 2024B onds onN ovem ber7,2014,and

itssecond paym entonM ay 7,2015.


24

107. U poninform ationand belief,A rgentina intends tom ak e all paym ents due

underthe term sof the B O N A R 2024B onds.

108. U pon inform ation and belief,A rgentina intends to issue additional

External Indebtednessinthe future.

109. U poninform ationand belief,A rgentina intends tom ak e all paym ents due

underthe term sof any otherexisting orfuture External Indebtedness.

110. Inadditiontothe bondsissued inthe 2005and 2010B ond Exchangesand

the B O N A R 2024B onds,A rgentina has issued otherExternal Indebtedness,m ade paym ents on

suchExternal Indebtedness and oninform ationand belief,itwill continue tom ak e paym ents on

and issue m ore of suchExternal Indebtedness.

111. A rgentina’s issuance of and paym ents onthe B O N A R 2024 B onds and

otherExternal Indebtedness constitute additional violations of the Equal Treatm entProvisionof

the FA A .

112. N M L now seek spaym entof the principal am ountof N M L ’sB ondstogether

withany accrued and unpaid interestand specific perform ance of the Equal Treatm entProvision

inthiscase withrespecttoitsbeneficial holdingsof bondsissued pursuanttothe FA A . N M L

alsoseek sspecific enforcem entof the Equal Treatm entProvisionwithrespecttothe B O N A R

2024B ondsand withrespecttoall External Indebtedness.

FIR ST C L A IM FO R R EL IEF(ForB reachof C ontractonthe 11% B onds)

113. Plaintiff repeats and realleges the allegations set forth inparagraphs 1

through112herein.

114. The 11% B onds m atured onO ctober 9,2006,at which tim e the entire

principal am ountof the B ondsbecam e due and payable.


25

115. O noraboutA ugust1,2008,Plaintiff advised A rgentina,by writtennotice

toA rgentina’sFiscal A gent,thatitwasdem anding im m ediate paym entof the $225,000principal

am ountof the 11% B ondsheld by Plaintiff togetherwithany accrued and unpaid interest.

116. A rgentina has failed tom ak e any paym ents of principal orinterestonthe

11% B ondstothe Plaintiff.

117. B y reason of the foregoing A rgentina has breached its contractual

obligations to Plaintiff,and A rgentina is liable to Plaintiff for dam ages in am ount to be

determ ined attrial,butnotlessthan$225,000,togetherwithprejudgm entinterestatthe statutory

rate.

SEC O N D C L A IM FO R R EL IEF(ForB reachof C ontractonthe 11.75% B onds)


through117herein.

119. Pursuant to Sections 12(a)and (d)of the FA A ,the declaration of a

m oratorium and the nonpaym ent of interest constitute Events of D efault onthe 11.75% B onds

entitling Plaintiff todeclare the principal am ountof the 11.75% B ondsitholds,togetherwithany

accrued and unpaid interest,tobe due and payable im m ediately.


toA rgentina’s Fiscal A gent,thatitwas declaring $11,290,000principal am ountof the 11.75%

B onds held by Plaintiff,together with any accrued and unpaid interest,im m ediately due and

payable pursuanttoSection12of the FA A .

121. D espite this notice,A rgentina has failed to m ak e any paym ents of

principal orinterestonthe 11.75% B ondstothe Plaintiff.


26



determ ined attrial,butnotless than$11,290,000,togetherwithany accrued and unpaid interest

due underthe term sof the 11.75% B onds.

T H IR D C L A IM FO R R EL IEF(ForB reachof C ontractonthe 11.375% B onds)


through122herein.


m oratorium and the nonpaym entof interestconstitute Events of D efaultonthe 11.375% B onds

entitling Plaintiff todeclare the principal am ount of the 11.375% B onds itholds,togetherwith

any accrued and unpaid interest,tobe due and payable im m ediately.



B onds Plaintiff holds,together with any accrued and unpaid interest,im m ediately due and








FO U R T H C L A IM FO R R EL IEF(ForB reachof C ontractonthe 12.375% B onds)


27


through127herein.


m oratorium and the nonpaym entof interestconstitute Events of D efaultonthe 12.375% B onds

entitling Plaintiff todeclare the principal am ount of the 12.375% B onds itholds,togetherwith












FIFT H C L A IM FO R R EL IEF(ForB reachof C ontractonthe 11-3/8% B onds)


through132herein.


m oratorium and the nonpaym entof interestconstitute Events of D efaultonthe 11-3/8% B onds

entitling Plaintiff to declare the principal am ount of the 11-3/8% B onds it holds,together with



28


toA rgentina’s Fiscal A gent,thatitwas declaring $42,155,000principal am ountof the 11-3/8%




principal orinterestonthe 11-3/8% B ondstothe Plaintiff.




due underthe term sof the 11-3/8% B onds.

SIX T H C L A IM FO R R EL IEF(ForB reachof C ontractonthe 12% B onds)


through137herein.


m oratorium and the nonpaym ent of interest constitute Events of D efault onthe 12% B onds

entitling Plaintiff todeclare the principal am ountof the 12% B onds itholds,togetherwithany



toA rgentina’sFiscal A gent,thatitwasdeclaring $1,100,000principal am ountof the 12% B onds

Plaintiff holds,together with any accrued and unpaid interest,im m ediately due and payable

pursuanttoSection12of the FA A .


principal orinterestonthe 12% B ondstothe Plaintiff.


29




due underthe term sof the 12% B onds.

SEV EN T H C L A IM FO R R EL IEF(ForB reachof C ontractonthe 9.75% B onds)


through142herein.


m oratorium and the nonpaym ent of interest constitute Events of D efault onthe 9.75% B onds

entitling Plaintiff todeclare the principal am ountof the 9.75% B onds itholds,togetherwithany



to A rgentina’s Fiscal A gent,that it was declaring $5,550,000 principal am ount of the 9.75%









EIG H T H C L A IM FO R R EL IEF(ForSpecific Enforcem entof the Equal Treatm entProvisionand forInjunctive R elief)


30

148. Plaintiff repeats and re-alleges the allegations set forth inparagraphs 1

through147herein.

149. Pursuant to ¶ 1(c)of the FA A ,A rgentina provided that its bonds issued

pursuant to the FA A would constitute “direct,unconditional,unsecured and unsubordinated

obligations of the R epublic and shall atall tim es rank paripassu and withoutpreference am ong

them selves ....”and that“[t]he paym entobligations of the R epublic underthe Securities shall

at all tim es rank at least equally with all its other present and future unsecured and

unsubordinated External Indebtedness… .”

150. A rgentina,therefore,m ay not m ak e any paym ent of its External

Indebtednesswithoutalsom ak ing a ratable paym entatthe sam e tim e toN M L .

151. Through the passage of L aw 26,017,A rgentina issued a new series of

bonds with paym ent obligations that rank higher thanthose held by N M L and other non-

tendering B ondholdersinviolationof the Equal Treatm entProvision.

152. Through the passage of L aw 26,547 A rgentina issued a new series of

bonds with paym ent obligations that rank higher thanthose held by N M L and other non-

tendering B ondholdersinviolationof the Equal Treatm entProvision.

153. The bonds issued inthe Exchanges are External Indebtedness and their

issuance violated the Equal Treatm entProvision.

154. A rgentina’s past paym ent of interest to 2005 B ondholders,while paying

nothing toN M L and othernon-tendering bondholders,violated the Equal Treatm entProvision.

155. A rgentina’scontinuing paym entsof interestto2005B ondholderswill be a

continuing violationof the Equal Treatm entProvision.


31

156. A rgentina’s paym ent of the scheduled interest to 2010 B ondholders will

be a continuing violationof the Equal Treatm entProvision.

157. N M L has suffered irreparable injury from A rgentina’s violationof the

Equal Treatm entProvisionand will continue tosuffersuchinjury unless the C ourtspecifically

enforces that Provisionwith a m andatory injunctionrequiring A rgentina to pay N M L ratably

wheneveritpaysinterestto2005or2010B ondholders.

158. R em ediesavailable atlaw are inadequate tocom pensate forsuchinjury.

159. N M L hasperform ed itspartof the contractwithA rgentina.

160. A rgentina is capable of perform ing its obligations pursuant to the Equal

Treatm entProvision.

161. The balance of the equitiestipstoward the issuance of aninjunction.

162. The public interestwould notbe disserved by a perm anentinjunction.

N IN T H C L A IM FO R R EL EIF(For Specific Enforcem entofthe Equal T reatm entProvisionand

for Injunctive R eliefW ithR especttothe BO N A R 2024Bonds)

163. N M L repeatsand reallegesthe allegationssetforthinparagraphs1through

162herein.

164. Pursuanttosection1(c)of the Fiscal A gency A greem ent,the A rgentina

provided thatitsbondsissued pursuanttothe Fiscal A gency A greem entwould constitute “direct,

unconditional,unsecured and unsubordinated obligationsof the R epublic and shall atall tim es

rank paripassu and withoutpreference am ong them selves”and that“[t]he paym entobligations

of the R epublic underthe Securitiesshall atall tim esrank atleastequally withall itsother

presentand future unsecured and unsubordinated External Indebtedness.”


32

165. A rgentina,therefore,m ay notm ak e any paym entof itsExternal

Indebtednesswithoutalsom ak ing a ratable paym entatthe sam e tim e toN M L . A ny paym entof

External Indebtednesswhere A rgentina doesnotalsom ak e a ratable paym entatthe sam e tim e to

N M L constitutesa violationof the Equal Treatm entProvision.

166. W iththe issuance of the B O N A R 2024B onds,A rgentina issued a new

seriesof bondswithpaym entobligationsthatrank higherthanthose held by N M L and other

non-tendering bondholdersinviolationof the Equal Treatm entProvision.

167. The B O N A R 2024B ondsare External Indebtedness. The issuance of the

B O N A R 2024B ondstodate and future issuancesof these bondshasviolated and will violate the

Equal Treatm entProvision.

168. A rgentina’spastpaym entstothe holdersof the B O N A R 2024B onds,while

paying nothing toN M L and othernon-tendering bondholders,violated the Equal Treatm ent

Provision.

169. A rgentina’scontinuing paym entstothe holdersof the B O N A R 2024B onds

will be a continuing violationof the Equal Treatm entProvision.

170. N M L hassuffered irreparable injury from A rgentina’sviolationof the Equal

Treatm entProvisionand will continue tosuffersuchinjury unlessthe C ourtspecifically enforces

thatProvisionwitha m andatory injunctionrequiring A rgentina topay N M L ratably wheneverit

paysinteresttothe holdersof the B O N A R 2024B onds.



173. A rgentina iscapable of perform ing itsobligationspursuanttothe Equal



33



T EN T H C L A IM FO R R EL EIF(For Specific Enforcem entofthe Equal T reatm entProvisionandfor Injunctive R eliefW ithR especttoA ll External Indebtedness)

176. N M L repeatsand reallegesthe allegationssetforthinparagraphs1through

175herein.

177. Pursuanttosection1(c)of the Fiscal A gency A greem ent,A rgentina

provided thatitsbondsissued pursuanttothe Fiscal A gency A greem entwould constitute “direct,

unconditional,unsecured and unsubordinated obligationsof the R epublic and shall atall tim es

rank paripassu and withoutpreference am ong them selves”and that“[t]he paym entobligations

of the R epublic underthe Securitiesshall atall tim esrank atleastequally withall itsother

presentand future unsecured and unsubordinated External Indebtedness.”

178. A rgentina,therefore,m ay notm ak e any paym entof itsExternal

Indebtednesswithoutalsom ak ing a ratable paym entatthe sam e tim e toN M L . A ny paym entof

External Indebtednesswhere the R epublic of A rgentina doesnotalsom ak e a ratable paym entat

the sam e tim e toN M L constitutesa violationof the Equal Treatm entProvision.

179. The R epublic of A rgentina hasissued— and,oninform ationand belief,will

issue inthe future— External Indebtednessinviolationof the Equal Treatm entProvision.

180. A rgentina’spastpaym entstothe holdersof External Indebtedness,while

paying nothing toN M L and othernon-tendering bondholders,violated the Equal Treatm ent

Provision.


34

181. A rgentina’scontinuing paym entstothe holdersof External Indebtedness—

including External Indebtednessthatthe R epublic of A rgentina will issue inthe future— will be a

continuing violationof the Equal Treatm entProvision.

182. N M L hassuffered irreparable injury asa resultof A rgentina’sviolationof

the Equal Treatm entProvisionand will continue tosuffersuchinjury unlessthe C ourt

specifically enforcesthatProvisionwitha m andatory injunctionrequiring A rgentina topay N M L

ratably wheneveritpaysinteresttothe holdersof External Indebtedness(including,forthe

avoidance of doubt,any bondswiththe ISIN A R A R G E03H 413,whetherissued before orafter

the entry of the injunction)orholdersof “R eplacem entO bligations”(m eaning bondsorother

obligationsissued,whetherbefore orafterentry of the injunction,inexchange,substitution,

restructuring,refinancing orsatisfactionof any B O N A R 2024B ondsorotherR eplacem ent

O bligations).



185. A rgentina iscapable of perform ing itsobligationspursuanttothe Equal




W H ER EFO R E,Plaintiff N M L dem ands judgm ent against the R epublic of

A rgentina,asfollows:

a. O nthe FirstC laim forR elief,awarding Plaintiff a m oney judgm entinan

am ounttobe determ ined attrial,butnotless than$225,000,togetherwithprejudgm entinterest

atthe statutory rate.


35

b. O nthe Second C laim forR elief,awarding Plaintiff a m oney judgm entin

anam ounttobe determ ined attrial,butnotlessthan$11,290,000,togetherwithany accrued and

unpaid interestdue underthe term sof the 11.75% B onds.

c. O nthe Third C laim forR elief,awarding Plaintiff a m oney judgm entinan

am ounttobe determ ined attrial,butnotless than$10,260,000,together withany accrued and


d. O nthe FourthC laim for R elief,awarding Plaintiff a m oney judgm ent in

anam ounttobe determ ined attrial,butnotlessthan$10,500,000,togetherwithany accrued and


e. O nthe FifthC laim forR elief,awarding Plaintiff a m oney judgm entinan

am ounttobe determ ined attrial,butnotless than$42,155,000,together withany accrued and

unpaid interestdue underthe term sof the 11-3/8% B onds.

f. O nthe SixthC laim forR elief,awarding Plaintiff a m oney judgm entinan

am ount to be determ ined at trial,but not less than$1,100,000,together withany accrued and

unpaid interestdue underthe term sof the 12% B onds.

g. O nthe SeventhC laim forR elief,awarding Plaintiff a m oney judgm entin

anam ounttobe determ ined attrial,butnotless than$5,500,000,togetherwithany accrued and


h. O nthe EighthC laim forR elief,anO rderspecifically enforcing the Equal

Treatm ent Provisionwith respect to all outstanding External Indebtedness and to all External

Indebtednessthatthe R epublic of A rgentina will issue inthe future by requiring ratable paym ent

to N M L whenever A rgentina m ak es or attem pts to m ak e paym ents onthe 2005 and 2010

Exchange B onds..


36

i. O nthe N inthC laim forR elief,anO rderspecifically enforcing the Equal

Treatm entProvisionwithrespecttothe B O N A R 2024B onds;

j. O nthe TenthC laim for R elief,anO rderspecifically enforcing the Equal

Treatm entProvisionwithrespecttoall External Indebtedness;and

k . A warding Plaintiff itscosts,prejudgm entinterest,attorneys’ feesand such

otherand furtherrelief asthe C ourtshall deem justand proper.

D ated:N ew Y ork ,N ew Y orkJuly 20,2015

D EC H ER T L L P

B y:/s/R obertA .C ohenR obertA .C ohen(robert.cohen@ dechert.com )D ennisH .H ranitz k y(dennis.hranitz k y@ dechert.com )

1095A venue of the A m ericasN ew Y ork ,N Y 10036-6797Telephone (212)698-3500Facsim ile (212)698-3599

Attorneys for Plaintiff NML Capital, Ltd.


EX H IB IT A

Case 1:08-cv-06978-TPG Document 807-1 Filed 07/20/15 Page 1 of 55

EX H IB IT B


EX H IB IT C


EX H IB IT D


EX H IB IT E


EX H IB IT F


GOVERNMENT DEBT

Law No. 26,886

Restructuring process of government-issued debt.

Enacted: September 11, 2013

Promulgated: September 20,2013

The Senate and Chamber of Representatives of Argentina, Meeting in Congress, etc. sign into

Law:

ARTICLE 1 - The Federal Executive Branch is authorized, through the Ministry of Economy and Public Finance, to carry out all acts necessary for the conclusion of the restructuring process of government-issued debt eligible for the swap provided by Decree No. 1,735 dated December 9, 2004, and supplementary regulations, that were not submitted to the same nor to the swap provided by Decree No. 563 dated April26, 2010, as provided by Article 65 of the Law of Financial Administration and Oversight Systems of the Federal Government No. 24,156 and modifications thereof, for the purpose of adjusting debt service to the payment possibilities of the National :state in the medium and long term. i

ARTICLE 2- The fmancial terms and conditions to be offered are prohibited from being more favorable than those offered to creditors in the debt restructuring provided by Decree No. 563/10.

ARTICLE 3 - Government-issued debt issued as a consequence of the provisions of this law, the provisions of Articles 7 and 10 of Law No. 23,928 and modifications thereof, as applicable, shall be exempted.

ARTICLE 4 - Holders of government-issued debt that are eligible for the swap provided under Decree No. 1,735/04 and supplementary regulations who wish to participate in any restructuring operation carried out within the framework of the provisions of this law, shall waive all rights under the referenced government-issued debt, including rights recognized by any court or administrative ruling, arbitral award or decision of any authority, and release the Argentine Republic from any court, administrative or arbitral action or any other type of action that has been filed or may be filed in the future in relation to the referenced government-issued debt or the obligations of the Argentine Republic that may arise therefrom, including any action for the purpose of receiving services related to capital or interest from the referenced government-issued debt.

It is forbidden to offer to holders of government-issued debt who have filed court, administrative or arbitral actions or actions of any other type treatment more favorable than that given to those who have not done so.

ARTICLE 5- The Ministry of Economy and Public Finance will inform the Federal Congress of the results of the provisions of this law on a quarterly basis.

ARTICLE 6- Government-issued debt eligible pursuant to the provisions of Decree No. 1,735/04 deposited for any reason due to an order from courts of any instance, authority or jurisdiction, whose holders did not observe the provisions of the swap provided by the aforementioned decree or the provisions <;>f Decree No. 563/10, or who did not expressly state in the respective legal proceedings their wish not to abide by the same, shall be automatically replaced by "2038 Par Value Step-Up Bonds of the Argentine Republic," under the conditions established for assignment, liquidation, and issuance of such bonds by Decree No. 1, 73 5/04 and supplementary regulations.

The Ministry of Economy and Public Finance is authorized to issue any supplementary rules necessary to implement the replacement provided in this article.

ARTICLE 7 - Articles 2, 3, and 4 of Law No. 26,017 are suspended until the Federal Congress declares the termination of the restructuring process for the government-issued debt under the referenced law.

ARTICLE 8- This law will enter into effect on the day of its publication in the Official Bulletin.

ARTICLE 9- Be it notified to the Federal Executive Branch.

ISSUED IN THE HALL OF SESSIONS OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, ON THE ELEVENTH DAY OF THE MONTH OF SEPTEMBER IN THE YEAR TWO THOUSAND THIRTEEN.

-REGISTERED UNDER NUMBER 26,886-

AMADO BOUDOU.- JULIAN A. DOMINGUEZ.- Gervasio Bazzano.- Juan H. Estrada.

Case: 12-105 Document: 1028 Page: 30 10/25/2013 1076065 168Case 1:08-cv-06978-TPG Document 807-6 Filed 07/20/15 Page 2 of 4

Translations, Inc.

STATEOFNEWYORK

ss

COUNTY OF NEW YORK

CERTIFICATION

This is to certify that the attached translation is, to the best of my knowledge and belief, a true

and accurate translation from Spanish into English of the attached Law No. 26,886, enacted on

September 11,2013.

Sworn to and subscribed before me

thisdt-f~ayof ~ ,20 !_3

Ken Hetzel, Project Manager Geotext Translations, Inc.

LYNDA GREEN NOTARY PUBUC.STATE OF NEW

N YORK 0· 01 GR620540 1

Qualified In N My Commission Ex ep~ York County

res May 11' 201 7

259 West 30th Street, 17th Floor, New York, NY 10001, U.S.A. tel +1 .212.631.7432 fax +1 .212.631.7778

220 Montgomery Street Ste. 438, San Francisco CA 94104 U.S.A tel +1.415.576.9500 fax +1.415.520.0525

\f\lcc.ch•,nrTtnn 1025 Connecticut Avenue, Suite 1000, Washington, DC 20036, U.S.A. Tel +1.202.828.1267 Fax +1.202.828.1271

8-11 St. John's Lane, London EC1 M 4BF, United l<ingdom Tel +44.20.7553.41 00 Fax+44.20.7990.9909

75 Boulevard Haussmann, F- 75008 Paris, France tel +33.1 .42.68.51 .47 fax +33.1 .77 .72.90.25

20th Floor, Central Tower, 28 Queen's Road, Central, Hong l<ong tel +852.2159.9143 fax +852.301 0.0082


Esta norma fue consultada traves de InfoLEG, base de datos del Centro de Documentaci6n e Informacion, f\1inisterio de Economia y Finanzas Publicas.

DEUDA PUBLICA

Ley 26.886

Proceso de reestructuraci6n de tftulos publicos.

Sancionada: Septiembre 11 de 2013

Promulgada: Septiembre 20 de 2013

El Senado y Camara de Diputados de Ia Nacion Argentina reunidos en Congreso, etc. sancionan con fuerza de

Ley:

ARTICULO 1°- Autorlzase al Poder Ejecutivo nacional, a traves del Ministerio de Economfa y Finanzas Publicas, a realizar todos aquellos actos necesarios para Ia conclusion del proceso de reestructuracion de los tltulos publicos que fueran elegibles para el canje dispuesto en el Decreta N° 1.735 del 9 de diciembre de 2004 y: sus normas complementarias que no hubiesen sido presentados al mismo ni al canje dispuesto por el Decreta N° 563 de fecha 26 de abril de 2010, en los terminos del articulo 65 de Ia ley 24.156 de Administracion Financiera y de los Sistemas de Control del Sector Publico Nacional y sus modificatorias, con el fin de adecuar los servicios de dicha deuda a las posibilidades de pago del Estado nacional en el mediano y largo plazo.

ARTICULO 2° - Los terminos y condiciones financieros que se ofrezcan no podran ser mejores que los ofrecidos a los acreedores en Ia reestructuracion de deuda dispuesta por el Decreta N° 563/10.

ARTICULO 3°- Exceptuase a los tltulos de deuda publica que se emitan como consecuencia de lo dis'puesto en Ia presente ley, de lo dispuesto en los a rtlculos 7° y 10 de Ia ley 23.928 y sus modificaciones, de corresponder.

ARTICULO 4° - Los tenedores de tltulos publicos que fueran elegibles para el canje dispuesto en el Decreta NO 1.735/04 y sus normas complementarias que deseen participar de cualquier operacion de reestructuracion que se rea lice en el marco de lo dispuesto en Ia presente ley, deberan renunciar a todos los derechos que les correspondan en virtud de los referidos tltulos, inclusive a aquellos derechos que hubieran sido reconocidos por cualquier sentencia judicial o administrativa, laudo arbitral o decision de cualquier otra autoridad, y renunciar y liberar a 1 Ia Republica Argentina de cualquier accion judicial, administrativa, arbitral o de cualquier otro tipo, iniciada o que pudiere iniciarse en el futuro con relacion a los referidos tltulos o a las obligaciones de Ia Republica Argentina que surjan de los mismos, incluyendo cualquier accion destinada a percibir servicios de capital o intereses de dichos tltulos.

Prohlbese ofrecer a los tenedores de deuda publica que hubieran iniciado acciones judiciales, administrativas, arbitrales ode cualquier otro tipo un trato mas favorable que a aquellos que nolo hubieran hecho.

ARTICULO 5°- El Ministerio de Economla y Finanzas Publicas informara trimestralmente al Honorable Congreso de Ia Nacion los resultados de lo dispuesto en Ia presente.

ARTICULO 6° - Los bonos del Estado nacional elegibles de acuerdo a lo dispuesto por el Decreta N° 1.735/04, depositados por cualquier causa o titulo a Ia orden de tribunales de cualquier'instancia, competencia y jurisdiccion, cuyos titulares no hubieran adherido al canje dispuesto por el decreta antes citado o el dispuesto por el Decreta N° 563/10, o no hubieran manifestado, en forma expresa, en las respectivas actuaciones judiciales, su voluntad de no adherir a los mismos, quedaran reemplazados, de pleno derecho, por los "Bonos de Ia Republica Argentina a Ia Par en Pesos Step Up 2038", en las condiciones establecidas para Ia asignacion, liquidacion y emision de tales bonos por el Decreta N° 1.735/04 y sus normas complementarias. ·

Facultase al Ministerio de Economla y Finanzas Publicas a dictar las normas complementarias que fueren necesarias para instrumentar el reemplazo dispuesto en el presente articulo.

ARTICULO 7°- Suspendese Ia vigencia de los artlculos 2°, 3° y 4° de Ia ley 26.017 hasta tanto el Congreso de Ia Nacion declare terminado el proceso de reestructuracion de los Tltulos Publicos alcanzados porIa referida norma.

ARTICULO 8°- La presente ley entrara en vigencia el dla de su publicacion en el Boletln Oficial.

ARTICULO 9°- Comunlquese al Poder Ejecutivo nacional.

DADA EN LA SALA DE SESIONES DEL CONGRESO ARGENTINO, EN BUENOS AIRES, A LOS ONCE DIAS DEL MES DE SEPTIEMBRE DELANO DOS MIL TRECE.

-REGISTRADO BAJO EL NO 26.886-

AMADO BOUDOU.- JULIAN A. DOMINGUEZ.- Gervasio Bazzano.- Juan H. Estrada.


EX H IB IT G


UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

---------------------------------------------x NML CAPITAL, LTD.,

Plaintiff,

– against –

REPUBLIC OF ARGENTINA,

Defendant.

: : : : : : : : : : :

08 Civ. 6978 (TPG) 09 Civ. 1707 (TPG) 09 Civ. 1708 (TPG)

ORDER

---------------------------------------------x

Upon consideration of the motion by NML Capital, Ltd. (“NML”) for partial

summary judgment pursuant to Rule 56(a) of the Federal Rules of Civil

Procedure (“FRCP”) and for injunctive relief and/or specific performance

pursuant to FRCP 65(d) and the court’s inherent equitable powers, the

response of the Republic of Argentina (the “Republic”) thereto, NML’s reply, and

all other arguments submitted to the court in the parties’ papers and at the

hearing held on September 28, 2011;

WHEREAS the uncontested facts establish that:

1. The Republic issued bonds pursuant to a 1994 Fiscal Agency

Agreement (“FAA”).

2. Paragraph 1(c) of the FAA provides, among other things, that:

The Securities [i.e., the bonds] will constitute . . . direct, unconditional, unsecured and unsubordinated obligations of the Republic and shall at all times rank pari passu and without any preference among themselves. The payment obligations of the Republic under the Securities shall at all times rank at least equally with all its other present and future unsecured and

Case 1:08-cv-06978-TPG Document 353 Filed 12/07/11 Page 1 of 5Case 1:08-cv-06978-TPG Document 807-7 Filed 07/20/15 Page 2 of 6

- 2 -

unsubordinated External Indebtedness (as defined in this Agreement). 3. The bonds issued pursuant to the FAA contain the following

clause, as quoted in EM Ltd. v. The Republic of Argentina, 720 F.Supp.2d 273,

278 (S.D.N.Y. 2010):

The Republic has in the Fiscal Agency Agreement irrevocably submitted to the jurisdiction of any New York state or federal court sitting in the Borough of Manhattan, The City of New York and the courts of the Republic of Argentina (the “Specified Courts”) over any suit, action, or proceeding against it or its properties, assets or revenues with respect to the Securities of this Series or the Fiscal Agency Agreement (a “Related Proceeding”) except with respect to any actions brought under the United States federal securities laws. The Republic has in the Fiscal Agency Agreement waived any objection to Related Proceedings in such courts whether on the grounds of venue, residence or domicile or on the ground that the Related Proceedings have been brought in an inconvenient forum. The Republic agrees that a final nonappealable judgment in any such Related Proceeding (the “Related Judgment”) shall be conclusive and binding upon it and may be enforced in any Specified Court or in any other courts to the jurisdiction of which the Republic is or may be subject (the “Other Courts”), by a suit upon such judgment.

4. NML owns bonds issued pursuant to the FAA (“NML’s Bonds”).

5. The Republic issued other bonds in its 2005 and 2010 Exchange

Offers (“Exchange Bonds”), thereby creating new unsecured and

unsubordinated External Indebtedness.

6. The Republic has satisfied the payment obligations that have come

due to date under the Exchange Bonds.

7. The Republic has not paid principal or interest on NML’s Bonds

since December, 2001.


- 3 -

8. NML has brought the captioned actions to recover on the defaulted

bonds, pursuant to its legal rights, and also pursuant to the express

undertakings in the bonds.

9. On February 10, 2005, Argentina enacted Law 26,017, providing

that the “national State shall be prohibited from conducting any type of in-

court, out-of-court or private settlement with respect to bonds” that were

eligible to participate in the 2005 Exchange Offer.

10. On December 9, 2009, Argentina enacted Law 26,547, which, inter

alia, suspended the effect of Law 26,017 for a period of time during which the

2010 Exchange Offer was launched, closed, and consummated. Law 26,547

also provides that the “Republic of Argentina . . . is prohibited to offer holders

of government bonds [including those issued pursuant to the FAA] who may

have initiated judicial, administrative, arbitration or any other type of action [to

enforce their rights], more favorable treatment than what is offered to those

who have not done so.”

WHEREAS NML claims that the Republic breached (and continues to

breach) its contractual duty to rank its payment obligations under NML’s

Bonds at least equally with all its other present and future unsecured and

unsubordinated External Indebtedness, NML seeks summary judgment on the

Republic’s liability for that breach, and NML seeks an injunction that would

restore it to its bargained-for position among other creditors;

It is HEREBY ORDERED that:


- 4 -

1. The motion for partial summary judgment pursuant to Rule 56(a)

is GRANTED.

2. It is DECLARED, ADJUDGED, and DECREED that the Republic is

required under Paragraph 1(c) of the FAA at all times to rank its payment

obligations pursuant to NML’s Bonds at least equally with all the Republic’s

other present and future unsecured and unsubordinated External

Indebtedness.

3. It is DECLARED, ADJUDGED, and DECREED that the Republic’s

payment obligations on the bonds include its payment obligations to

bondholders who have brought actions to recover on their defaulted bonds, and

on judgments entered pursuant to judicial action brought by bondholders.

4. It is DECLARED, ADJUDGED, and DECREED that the Republic

violates Paragraph 1(c) of the FAA whenever it lowers the rank of its payment

obligations under NML’s Bonds below that of any other present or future

unsecured and unsubordinated External Indebtedness, including (and without

limitation) by relegating NML’s bonds to a non-paying class by failing to pay the

obligations currently due under NML’s Bonds while at the same time making

payments currently due to holders of other unsecured and unsubordinated

External Indebtedness or by legislative enactment.


lowered the rank of NML’s bonds in violation of Paragraph 1(c) of the FAA when

it made payments currently due under the Exchange Bonds, while persisting in

its refusal to satisfy its payment obligations currently due under NML’s Bonds.



lowered the rank of NML's bonds in violation of Paragraph l(c) of the FAA when

it enacted Law 26,017 and Law 26,547.

7. It is DECLARED, ADJUDGED, and DECREED that the aforesaid

laws were in direct violation of the right of NML under the FAA and the bond

agreements to bring a legal action in court to recover on the defaulted bonds.

8. The motion for injunctive relief and/or specific performance

pursuant to FRCP 65(d) and the court's inherent equitable powers is DENIED

at the present time to permit further consideration by the court regarding the

means of enforcement of the present ORDER.

SO ORDERED.

Dated: New York, New York December 7, 2011

Thomas P. Griesa U.S. District Judge

- 5


EX H IB IT H


( .: ~ . USDCSDNY ti DOCUMENT ELECTRONICALLY FILED OOC#:


DATE FILED: 1-/2311 L

-------------------------------------------------------)(

NML CAPITAL, LTD.

Plaintiff,


v.

REPUBLIC OF ARGENTINA,

Defendant.

-------------------------------------------------------x

fatt8P9$D.l.. ORDER

WHEREAS, in an Order dated December 7, 2011, this Court found that, under Paragraph

1 ( c) of the 1994 Fiscal Agency Agreement ("FAA"), the Republic is "required ... at all times to

rank its payment obligations pursuant to NML's Bonds at least equally with all the Republic's

other present and future unsecured and unsubordinated E}(temal Indebtedness."

WHEREAS, in its December 7, 2011 Order, this Court granted partial summary

judgment to NML on its claim that the Republic repeatedly has breached, and continues to

breach, its obligations under Paragraph l(c) of the FAA by, among other things, "ma[king]

payments currently due under the Exchange Bonds, while persisting in its refusal to satisfY its

payment obligations currently due under NML's Bonds."

And WHEREAS NML Capital, Ltd. ("NML") has filed a renewed motion for equitable

relief as a remedy for such violations pursuant to Rule 65(d) of the Federal Rules of Civil

Procedure and the Court's inherent equitable powers.

14293534


Upon consideration of NML's renewed motion, the response of the Republic of

Argentina (the "Republic") thereto, NML's reply, and all other arguments submitted to the Court

in the parties' papers and at oral argument, it is HEREBY ORDERED that:

1. It is DECLARED, ADJUDGED, and DECREED that NML is irreparably harmed

by and has no adequate remedy at law for the Republic's ongoing violations of Paragraph I (c) of

the FAA, and that the equities and public interest strongly support issuance of equitable relief to

prevent the Republic from further violating Paragraph 1 (c) of the FAA, in that:

a. Absent equitable relief, NML would suffer irreparable harm because the

Republic's payment obligations to NML would remain debased of their

contractually-guaranteed status, and NML would never be restored to the

position it was promised that it would hold relative to other creditors in the

event of default.

b. There is no adequate remedy at law for the Republic's ongoing violations

of Paragraph I (c) of the FAA because the Republic has made c1ear

indeed, it has codified in Law 26,017 and Law 26,547-its intention to

defy any money judgment issued by this Court.

c. The balance of the equities strongly supports this Order in light of the

clear text of Paragraph I(c) of the FAA and the Republic's repeated

failures to make required payments to NML. In the absence of the

equitable relief provided by this Order, the Republic will continue to

violate Paragraph l(c) with impunity, thus subjecting NML to harm. On

the other hand, the Order requires of the RepUblic only that which it

2


promised NML and similarly situated creditors to induce those creditors to

purchase the Republic's bonds. Because the Republic has the financial

wherewithal to meet its commitment of providing equal treatment to both

NML (and similarly situated creditors) and those owed under the terms of

the Exchange Bonds, it is equitable to require it to do so. Indeed,

equitable relief is particularly appropriate here, given that the Republic has

engaged in an unprecedented, systematic scheme of making payments on

other external indebtedness, after repudiating its payment obligations to

NML, in direct violation of its contractual commitment set forth in

Paragraph 1 (c) of the FAA

d. The public interest of enforcing contracts and upholding the rule of law

will be served by the issuance of this Order, particularly here, where

creditors of the Republic have no recourse to bankruptcy regimes to

protect their interests and must rely upon courts to enforce contractual

promIses. No less than any other entity entering into a commercial

transaction, there is a strong public interest in holding the Republic to its

contractual obligations.

2. The Republic accordingly is permanently ORDERED to specifically perform its

obligations to NML under Paragraph I (c) of the FAA as follows:

a. Whenever the Republic pays any amount due under tem1S of the bonds or

other obligations issued pursuant to the Republic's 2005 or 2010

Exchange Offers, or any subsequent exchange of or substitution for the

3


2005 and 2010 Exchange Offers that may occur in the future (collectively,

the "Exchange Bonds"), the Republic shall concurrently or in advance

make a "Ratable Payment" (as defined below) to NML.

b. Such "Ratable Payment" that the Republic is ORDERED to make to NML

shall be an amount equal to the "Payment Percentage" (as defined below)

multiplied by the total amount currently due to NML in respect of the

bonds at issue in these cases (08 Civ. 6978, 09 Civ. 1707, and 09 Civ.

1708), including pre-judgment interest (the "NML Bonds").

c. Such "Payment Percentage" shall be the fraction calculated by dividing

the amount actually paid or which the Republic intends to pay under the

terms of the Exchange Bonds by the total amount then due under the terms

of the Exchange Bonds.

d. The Republic is ENJOINED from violating Paragraph l(c) of the FAA,

including by making any payment under the terms of the Exchange Bonds

without complying with its obligation pursuant to Paragraph l(c) of the

FAA by concurrently or in advance making a Ratable Payment to NML.

e. Within three (3) days of the issuance of this ORDER, the Republic shall

provide copies of this ORDER to all parties involved, directly or

indirectly, in advising upon, preparing, processing, or facilitating any

payment on the Exchange Bonds (collectively, "Agents and Participants"),

with a copy to counsel for NML. Such Agents and Participants shall be

bound by the terms of this ORDER as provided by Rule 65(d)(2) and

4


prohibited from aiding and abetting any violation of this ORDER,

including any further violation by the Republic of its obligations under

Paragraph 1 (c) of the FAA, such as any effort to make payments under the

terms of the Exchange Bonds without also concurrently or in advance

making a Ratable Payment to NML.

f. Concurrently or in advance of making a payment on the Exchange Bonds,

the Republic shall certifY to the Court and give notice of this certification

to its Agents and Participants, and to counsel for NML, that the Republic

has satisfied its obligations under this ORDER to make a Ratable Payment

to NML.

3. NML shall be entitled to discovery to confirm the timing and amounts of the

Republic's payments under the terms of the Exchange Bonds; the amounts the Republic owes on

these and other obligations; and such other information as appropriate to confirm compliance

with this ORDER;

4. The Republic is permanently PROHIBITED from taking action to evade the

directives of this ORDER, render it ineffective, or to take any steps to diminish the Court's

ability to supervise compliance with the ORDER, including, but not limited to, altering or

amending the processes or specific transfer mechanisms by which it makes payments on the

Exchange Bonds, without obtaining prior approval of the Court;

5


5. 1bis Court shall retain jurisdiction to monitor and enforce this ORDER, and to

modify and amend it as justice requires to achieve its equitable purposes and to account for

changing circumstances.

Dated: ~ 7.... ?, ',2. 6 I J~Q~~,2 .z:~

omas P. Griesa

6


EX H IB IT I


EX H IB IT J



-------------------------------------------------------· )(

NML CAPITAL, LTD.,

Plaintiff,

v.

THE REPUBLIC OF ARGENTINA,

Defendant.

-------------------------------------------------------· )(

AURELIUS CAPITAL MASTER, LTD. and ACP MASTER, LTD.,

Plaintiffs,

v.


Defendant.

-------------------------------------------------------· )(

AURELIUS OPPORTUNITIES FUND II, LLC : and AURELIUS CAPITAL MASTER, LTD.,

Plaintiffs,

v.


Defendant.

-------------------------------------------------------· )(

ORDER


USDCSDNY DOCUME~i ELECTRONICALLY FILED DOC#: DATB F1LBD--:-c;-/7_c_/_l g-

09 Civ. 8757 (TPG) 09 Civ. 10620 (TPG)

10 Civ. 1602 (TPG) 10 Civ. 3507 (TPG)

(captions continued on next page)


AURELIUS CAPITAL MASTER, LTD. and AURELIUS OPPORTUNITIES FUND II, LLC,

Plaintiffs,

v.


Defendant.

BLUE ANGEL CAPITAL I LLC,

Plaintiff,

v.


Defendant.

)C

---------------------------------------------------------- )C

OLIF ANT FUND, LTD.,

Plaintiff,

v.


Defendant.

---------------------------------------------------------- )C

PABLO ALBERTO VARELA, et al.,

Plaintiff,

v.


Defendant. ------- )C

---------------------------------------------------

10 Civ. 3970 (TPG) 10 Civ. 8339 (TPG)

10 Civ. 4101 (TPG) 10 Civ. 4782 (TPG)

10 Civ. 9587 (TPG)

10 Civ. 5338 (TPG)


1. In his June 1 7, 2014 speech, Argentina's Economy Minister Axel Kicillof proposed that

Argentina initiate steps to carry out a debt exchange to pay the exchange bondholders in

Argentina under Argentine law.

2. This court rules that the above proposal of the Economy Minister is in violation of the

rulings and procedures now in place in the Southern District ofNew York, and the

Republic of Argentina is prohibited from carrying out the proposal of the Economy

Minister.

SO ORDERED.

Dated: New York, New York June 20, 2014


EX H IB IT K



---------------------------------------------------------- )(

NML CAPITAL, LTD.,

Plaintiff,

v.


Defendant.

---------------------------------------------------------- )(


Plaintiffs,

v.


Defendant.

---------------------------------------------------------- )(

AURELIUS OPPORTUNITIES FUND II, LLC and AURELIUS CAPITAL MASTER, LTD.,

Plaintiffs,

v.


Defendant.

---------------------------------------------------------- )(

f ~CSDNY 1' . ,~ .. ··UMENT .· · • . ; i'"TDONJCALT" FILED ;i

( ~ I •• - ,.J.A r.I.,.,J. :i ;,~.!II· U • . . .. J•

D~LE:~D: 8/f/-~(~ :II 08 Civ. 6978 (TPG) 09 Civ. 1707 (TPG) 09 Civ. 1708 (TPG)

09 Civ. 8757 (TPG) 09 Civ. 10620 (TPG)

10 Civ. 1602 (TPG) 10 Civ. 3507 (TPG)


ORDER

2964498.7


----------------------------------------------------------- )(

AURELIUS CAPITAL MASTER, LTD. and AURELIUS OPPORTUNITIES FUND II, LLC,

Plaintiffs,

v.


Defendant. ----------------------------------------------------------- )(


Plaintiff,

v.


Defendant.

----------------------------------------------------------- )(

OLIFANT FUND, LTD.,

Plaintiff,

v.


Defendant.

----------------------------------------------------------- )(


Plaintiff,

v.


Defendant.

----------------------------------------------------------- )(

2964498.7

10 Civ. 3970 (TPG) 10 Civ. 8339 (TPG)

10 Civ. 4101 (TPG) 10 Civ. 4782 (TPG)

10 Civ. 9587 (TPG)

10 Civ. 5338 (TPG)


WHEREAS, on November 12, 2012, this Court issued Amended February

23, 2012 Orders in each of the above-captioned cases (the "Amended February 23

Orders"), which provide, among other things, that: (a) whenever the Republic of

Argentina ("Argentina") pays any amount due under the Exchange Bonds, it shall

concurrently or in advance make a Ratable Payment to Plaintiffs; (b) Argentina is

enjoined from making any payment on the Exchange Bonds without complying with its

obligation to make a Ratable Payment to Plaintiffs; (c) concurrently or in advance of

making a payment on the Exchange Bonds, Argentina shall certify to the Court, with

notice to, among others, counsel for Plaintiffs, that it has satisfied its obligations to make

a Ratable Payment to Plaintiffs; and (d) Argentina is permanently prohibited from taking

action to evade the directives of the Amended February 23 Orders; and

WHEREAS, on June 26, 2014, Argentina set in motion the process of

making certain payments to Exchange Bondholders in defiance of the Orders by

transferring the equivalent of approximately $539 million ($230,922,521.14 in US dollars

and 225,852,475.66 in Euros) to The Bank ofNew York Mellon ("BNY") into BNY

accounts at the Banco Central de la Republica de Argentina (the "BCRA") (this transfer,

together with any other funds, if any, that Argentina has transferred to BNY relating to

payments on the Exchange Bonds due on or after June 16, 2014 collectively, the

"Funds"); and

WHEREAS, on June 27, 2014 and July 22, 2014, the Court held hearings

in these matters, and ruled that the payment by Argentina to BNY described above was a

violation of the Amended February 23 Orders and illegal;

2964498.7


IT IS HEREBY ORDERED that:

1. For the reasons stated on the record at the June 27, 2014 and July

22, 2014 hearings, the payment by Argentina to BNY described above was illegal and a

violation ofthe Amended February 23 Orders.

2. BNY shall retain the Funds in its accounts at the BCRA pending

further Order of this Court, and shall not make or allow any transfer of the Funds unless

ordered by the Court.

3. Argentina will take no steps to interfere with BNY's retention of

the Funds in accordance with the terms of this Order.

4. BNY's retention of the Funds in its accounts at the BCRA pursuant

to this Order shall not be deemed a violation of the Amended February 23 Orders. BNY

shall incur no liability under the Indenture governing the Exchange Bonds or otherwise to

any person or entity for complying with this Order and the Amended February 23 Orders.

Dated: New York, New York August t; , 2014

2964498.7

~~ Thomas P. Griesa United States District Judge

2


EX H IB IT L


EX H IB IT M



---------------------------------------------X

NML CAPITAL, LTD., Plaintiff,

-against-


Defendant.

---------------------------------------------X


Plaintiffs,

-against-


Defendant.

---------------------------------------------X


Plaintiffs,

-against-


Defendant.

---------------------------------------------X


09 Civ. 8757 (TPG) 09 Civ. 10620 (TPG)

10 Civ. 1602 (TPG) 10 Civ. 3507 (TPG) 10 Civ. 3970 (TPG) 10 Civ. 8339 (TPG)



---------------------------------------------X


Plaintiff,

-against-


Defendant.

---------------------------------------------X

OLIFANT FUND, LTD.,

Plaintiff,

-against-


Defendant.

---------------------------------------------X


Plaintiffs,

-against-


Defendant.

---------------------------------------------X

2

10 Civ. 4101 (TPG) 10 Civ. 4782 (TPG)

10 Civ. 9587 (TPG)

10 Civ. 5338 (TPG)


ORDER

On September 24, 2014, plaintiffs moved by order to show cause to hold the

Republic of Argentina in civil contempt of court for violating the Amended

February 23, 2012 order. For the reasons given at the hearing today, the court

holds that Argentina is in civil contempt of court. The court will reserve

decision on the issue of sanctions for further briefing.

SO ORDERED.

Dated: New York, New York September 29, 2014

3

~e~ ) Thomas P. Griesa

U. S. District Judge


EX H IB IT N



---------------------------------------------X

NML CAPITAL, LTD., Plaintiff,

-against-


Defendant.

---------------------------------------------X


Plaintiffs,

-against-


Defendant.

---------------------------------------------X


Plaintiffs,

-against-


Defendant.

---------------------------------------------X

USDCSDNY DOCUMENT ELECTRONICALLY FILED

1 OOC #: ------

. l_?~fE Fl~D: ,o6 ft!_<--c--::.:'=·


09 Civ. 8757 (TPG) 09 Civ. 10620 (TPG)

10 Civ. 1602 (TPG) 10 Civ. 3507 (TPG) 10 Civ. 3970 (TPG) 10 Civ. 8339 (TPG)



---------------------------------------------X


Plaintiff,

-against-


Defendant.

---------------------------------------------X

OLIFANT FUND, LTD.,

Plaintiff,

-against-


Defendant.

---------------------------------------------X


Plaintiffs,

-against-


Defendant.

---------------------------------------------X

2

10 Civ. 4101 (TPG) 10 Civ. 4782 (TPG)

10 Civ. 9587 (TPG)

10 Civ. 5338 (TPG)


AMENDED AND SUPPLEMENTAL ORDER

On September 29, 2014, pursuant to an order to show cause, the court

held a hearing, at the conclusion of which it found that the Republic of

Argentina was in civil contempt of court. The reasons for this finding were

stated on the record.

The court now reaffirms this finding, and incorporates it by reference in

this order.

Pursuant to Local Civil Rule 83.6(c), a finding of contempt should include

a statement of conditions the performance of which will operate to purge the

contempt. The court believes that it is clear what such conditions are. The

Republic of Argentina will need to reverse entirely the steps which it has taken

constituting the contempt, including, but not limited to, re-affirming the role of

The Bank of New York Mellon as the indenture trustee and withdrawing any

purported authorization of Naci6n Fideicomisos, S.A. to act as the indenture

trustee, and complying completely with the February 23, 2012 injunction.

The current order amends and supplements the order of September 29,

2014.

SO ORDERED.

Dated: New York, New York October 3, 2014

: =: 'j'tjsoc SDNY

~DOCUME~i ELECfRONICAL1-Y DQC#:---.--~-----

\1 nATE FILED: -'YJJ£i:=::::~~:. := . ~ :.~:-:-.:~ li ·-· : ..

3

~ 0(/ . / Jdhn<VJ ~~~ Thomas P. Griesa U. S. District Judge


u n ited sta tes d istrict co u rt so u th ern …/media/files/services/...settlem ent itd report...

Documents