to allow the Republic to engage in a dialogue with the plaintiffs in a reasonable timeframe for these kinds of negotiations

BY HAND AND 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 ofArgentina, Nos. 08 Civ. 6978 (TPG),
09 Civ. 1707 (TPG) and 09 Civ. 1708 (TPG): and related cases
Dear Judge Griesa:
I write to follow up on my report to the Court during last Wednesday's conference
that the Republic of Argentina (the "Republic") is willing to negotiate in good faith. The
Republic respectfuilly requests a stay of the Amended Injunctions to allow the Republic to
engage in a dialogue with the plaintiffs in a reasonable timeframe for these kinds of negotiations.
The Republic has recently successfully settled major disputes. including the one
with Repsol, which had a claim for $ 10 billion before ICSID for the expropriation of 5 1% of
YPF S.A. shares, $9.7 billion in claims held by the nations that comprise the Paris Club, and
hundreds of millions of dollars of ICSID arbitral awards. These recent settlements - which were
the product of lengthy negotiations and resulted in necessary haircuts, maturity extensions, and
interest rate reductions in line with the Republic's capacity to pay - were breakthroughs that
reflect Argentina's focus on emerging from the crisis of 2001 and normalizing its relationship
with its creditors. These settlements were voluntary and, therefore, equitable for the parties
involved. Argentina wants to emerge from the litigation that has burdened both it and the courts.
Hence, the Republic respectfully requests that Your Honor stay the Amended Injunctions. A
stay would provide shelter (a legal umbrella) for negotiations to take place in light of the legal
and financial complexity inherent to the process.
The Second Circuit's decision requires Argentina, when it makes an interest
payment on restructured debt, to pay full principal and interest to all holders of defaulted debt.
The Republic cannot afford to do this, nor can it pay some creditors in full and not others. The
total amount due to holdouts from the Republic's debt restructuring exceeds half the country's
reserves. No country could pay half of its reserves, and Argentina cannot afford to be left
without the means to manage its currency or handle the rest of its economy, including meeting
the needs of its citizenry. Nor can Argentina ignore the Rights Upon Future Offers clause (the
"RUFO" clause) governing its New York-law restructured debt, which expires on December 3 1,
2014, as it could give rise to litigation in other jurisdictions that could destroy the successful
restructuring of 92% of the Republic's defaulted debt. See Exhibit A (example RUFO clause).
Argentina is also subject, as a sovereign nation, to its own Constitutional processes and the laws
concerning debt restructuring enacted by its Congress.
Argentina is therefore committed to engaging in a dialogue with plaintiffs that can
lead to the resolution of this litigation, if the right circumstances for negotiation contemplating
the interests of 100% of its creditors are established as the Republic requests here.
In sum, the Republic is committed to a dialogue that will be followed by what the
Republic intends to be a resolution of this litigation and the entirety of its outstanding debt
burden, which is a matter of public interest to all Argentine citizens. The Republic has honored
its obligations, including to the restructured bondholders, and wants to continue doing so with
100% of its creditors. The Republic accordingly respectfully asks that Your Honor grant this
stay to allow for the commencement of good faith negotiations between Argentina and its
creditors.
cc: Counsel of Record (by email)
Case 1:08-cv-06978-TPG Document 531 Filed 06/23/14 Page 2 of 6Exhibit A
Case 1:08-cv-06978-TPG Document 531 Filed 06/2

http://www.shearman.com/~/media/Files/Services/Argentine-Sovereign-Debt/2014/Arg83-2014-06-23-Cleary-Letter.pdf