Dear Judge Griesa: I write on behalf of the Republic of Argentina (the "Republic") in response to Robert Cohen's letter, dated October 8, 2014, in which he states that, on top of the more than $1.6 billion in claims already subject to pari passu injunctions, plaintiffs in 52 other pre- and post-judgment actions will soon be seeking via two consolidated motions identical injunctions in connection with additional claims that total over $4.4 billion dollars (an amended letter from Mr. Cohen of the same date states that plaintiffs in another 50 actions similarly will be seeking pani passu relief).

November 6, 2014
BY ECF
Honorable Thomas P. Griesa
United States District Court for
the Southern District of New York
500 Pearl Street
New York, New York 10007
Re: NML Capital, Ltd. v. Republic ofArgenlina, Nos. 08 Civ. 6978 (TPG),
09 Civ. 1707 (TPG) and 09 Civ. 1708 (TPG); and related eases

Dear Judge Griesa:
I write on behalf of the Republic of Argentina (the "Republic") in response to
Robert Cohen's letter, dated October 8, 2014, in which he states that, on top of the more than
$1.6 billion in claims already subject to pari passu injunctions, plaintiffs in 52 other pre- and
post-judgment actions will soon be seeking via two consolidated motions identical injunctions in
connection with additional claims that total over $4.4 billion dollars (an amended letter from Mr.
Cohen of the same date states that plaintiffs in another 50 actions similarly will be seeking pani
passu relief).

The practical impact of the existing pari passu injunctions has become clear since
they went into effect this past June. They did not "end" the litigation as plaintiffs had assured
the Court that they would when plaintiffs asked for this extraordinary relief. See Feb. 23, 2012
Hr'g Tr. at 3:6, 46:23 (counsel for NML stating that the Republic "has the resources" and would
thus "pay the NML bondholders" in full).'1 Nor have they otherwise furthered a resolution of
these disputes, given the legal and other financial constraints faced by the Republic and the
ISince June 16, 2014, 25 new suits have been filed in connection with claims for approximately $1.8 billion in
principal and judgments totalling approximately $4.7 billion.

CLEARY GOTTLIEB STEEN & HAMILTON LLP OR AN AFFILIATED ENTITY HAS AN OFFICE IN EACH OF THE CITIES LISTED ABOVE

Case 1:08-cv-06978-TPG Document 708 Filed 11/06/14 Page 1 of 2
Honorable Thomas P. Griesa, p. 2
inordinate leverage these unprecedented orders give to plaintiffs, which was not and could not
have been anticipated by anyone when plaintiffs' 1994 Fiscal Agency Agreement ("FAA")
bonds were issued or when the Republic's Exchange Offers were made and accepted by ovcr
92% of eligible debt, including the vast majority of FAA bondholders. Rather, as the Republic
has at all times argued, including when asking for a stay, the injunctions have had only a
negative effect: they have created more litigation, and for over four months now have prevented
the third-party Exchange Bondholders from receiving the interest payments to which they are
indisputably entitled. Press reports now indicate that certain of those Exchange Bondholders are
preparing to accelerate their bond series, thereby exacerbating further the situation. The current
equitable landscape thus differs materially from when the Court first entered the existing pari
passu injunctions.
Plaintiffs' proposal here to increase by many billions the total amount of claims
subject to injunctive relief further demonstrates the inefficacy of the pari passu injunctions and
the impossible situation in which they put the Republic. As plaintiffs themselves acknowledge
and as demonstrated by the Court's November 3, 2014 Order broadening the Special Master's
powers to cover discussions with additional Republic creditors - even that amount understates
the full extent of the Republic's exposure to pari passu claims and the resulting threat to the
Republic's economy, as additional billions of dollars of defaulted Republic debt remains
outstanding on top of those claims. There can be no equitable basis for seeking to compel the
Republic -whose reserves are approximately $28 billion and must be used for critical
macroeconomic purposes - to do the impossible by paying in full its holdout debt, much of
which was purchased at a deep discount in the secondary market with the aim of extracting
through litigation better terms than the vast majority of the Republic's creditors who participated
in the Republic's debt restructuring.
Beyond the equities, plaintiffs' forthcoming motions also raise new issues
concerning the propriety of entering pan passu injunctions in cases where plaintiffs have already
obtained money judgments on their claims. As the Republic has explained in previous
correspondence to the Court, principles of res judicata and the merger doctrine bar plaintiffs
from seeking specific performance of the pari passu clause after their contract claims have been
reduced to judgment. Moreover, while the Second Circuit found that the Foreign Sovereign
Immunities Act ("FSIA") did not prohibit entry of the existing injunctions in the pre-judgment
context, in the post-judgment context the injunctions would clearly function as judgment
execution devices that run afoul of the FSIA.
These and other critical issues will need to be fully briefed for the first time in
connection with plaintiffs' consolidated motions. Any related briefing should accordingly
proceed on a timetable that sufficiently permits the parties to address them, with at least six
weeks for the Republic to submit its opposition papers.
Respectfully submitted,
Carmine D. Boccuzzi Jr.