Cleary also is waiting for the crucial decision that must be issued by a court of appeals in New York around the case of “pari passu” by which Argentina already received a negative sentence in the lower court.

La Nacion

The vulture fund offers to repatriate the sailors, but insists on collecting

Friday, October 19, 2012

By Martin Kanenguiser

In a public relations move, the vulture fund NML-Elliott offered Argentina to repatriate the crew of the Frigate Libertad for free, while it again said that, to release the ship, it demands that the country pay a deposit of US$20 million.

In a letter to the law firm that represents NML in Ghana, Bentsi-Enchill, Letsa & Ankomah, sent to Argentina’s legal representative, Larry Otoo, it is said that “the client has no intention of provoking inconveniences” for the crew.  For this reason, “even in the absence of a bond, NML Capital can, immediately, pay all the costs for all the sailors to return to their respective countries,” says the letter signed by Ace Anan Ankomah.

This letter – sent with copies to the main officials of the Ghanaian government – dedicates various paragraphs to trying to show good will before the international efforts by Argentina for the Frigate to be released, since it is a sovereign asset of the country.

"We should recall that in its ruling of October 2, the Honorable Court, aware of the possible effect of its order, explicitly gave Argentina the chance to release the Frigate Libertad,” it was explained.

On that, they recalled that NML “does not oppose the ship leaving Ghana if your client deposits a bond of US$20 million.”

The amount, they said, “is reasonable, since it represents less than 5% of the amount claimed by our client in the court” of the United States, together with Dart, the other fund, which is legally domiciled in a tax haven.

Both have obtained dozens of rulings handed down in American courts and some temporary attachments, like the one executed on the Argentine embassy in France, but they were revoked.  For this reason, the decision by the court in Ghana to capture the Frigate was seen as an important victory for its battle to collect 100% of value on the Argentine bonds in default, despite the fact that they bought them for pennies from other creditors.

"We regret that we have still not received a formal response to this offer.  Anyway, we note that, as was indicated before the court on October 9, your client does not appear ready to place a bond,” the attorney added.

The litigating attorneys reiterated: “We believe that there is still a chance for Argentina to deposit a bond in the court and obtain the immediate release of the ship.”  It would seem, until yesterday afternoon, the law firm that represents Argentina – subcontracted by the law firm Cleary, Gottlieb, Steen & Hamilton in New York – hadn’t responded to this letter from NML.

An attorney from Cleary, which represents Argentina abroad, traveled twice this month from New York to Accra to participate in the complex legal strategy on the case.

Cleary also is waiting for the crucial decision that must be issued by a court of appeals in New York around the case of “pari passu” by which Argentina already received a negative sentence in the lower court.  The source indicated that it’s possible that the court would rule against the legitimacy of the “locked-shut law” which prohibits negotiation with the holdouts, which could oblige the rethinking of all the payment of bonds that have been paid since the swaps to exit the default of 2005 and 2010.