Re: Default Argentina Bonds / Status Update We are writing to bring you up to date on the status of our litigation.

Re: Default Argentina Bonds / Status Update

We are writing to bring you up to date on the status of our litigation.

  As you know, we have appealed Judge Griesa’s order vacating our Equal Treatment injunctions.  We believe he has been unduly influenced by President Macri’s statements of “openness” to resolving the bond claims, and did not pay attention to the reality: that the officials designated to resolve the claims have not actually been negotiating, except with the large (“NML Group”) of hedge funds.  There are no “changed circumstances” that could justify vacating our injunctions.  We are confident that we have strong arguments to present to the Second Circuit Court of Appeals (the same court that has ruled against Argentina in the prior injunction appeals).  Written briefs have now been submitted, and oral argument is scheduled for April 13.  The funding date for the NML Group settlement is April 14, so there will be a lot of things happening around that time.

  All other settlements to day have been according to the terms of the “public offer”:  face value of bond + 50% for bondholders who do not have Equal Treatment injunctions; and 70% of claim value (principal + interest + interest on interest) for bondholders with Equal Treatment injunctions.  Those are the only settlement terms the government has offered, except of course for the NML Group settlement, which was at 79% of claim value.

  We are trying to get an offer on terms at least as good as the NML Group terms.  However, there is no way to know whether the government will negotiate with us, and if so, what terms we would be able to get.  Keep in mind that if the Second Circuit rules in our favor, Argentina’s plans to reenter international markets will be seriously jeopardized.  It would make sense for Argentina to try to settle our claims before the appeal is decided.  However, Argentina does not always act responsibly or rationally in these matters.

  As always, it is up to you to decide whether, when, and at what terms you may wish to settle.  As stated above, we recommend that you be patient so we can see what develops.

Best regards,