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Mittwoch, 23. Juli 2014

57 s transcript hearing vom 22.7.2014

                                                                  1
      E7mrnmlm
  1   UNITED STATES DISTRICT COURT
  1   SOUTHERN DISTRICT OF NEW YORK
  2   ------------------------------x
  2
  3   NML CAPITAL, LTD., et al.,
  3
  4                  Plaintiffs,
  4
  5              v.                           08 CV 6978 (TPG)
  5
  6   THE REPUBLIC OF ARGENTINA,              Argument
  6
  7                  Defendant.
  7
  8   ------------------------------x
  8
  9                                           New York, N.Y.
  9                                           July 22, 2014
 10                                           10:30 a.m.
 10
 11   Before:
 11
 12            HON. THOMAS P. GRIESA,
 13
 13                                           District Judge
 14
 14
 15
 16            APPEARANCES
 17
 17   DECHERT LLP
 18        Attorneys for Plaintiff NML Capital, Ltd.
 18   BY:  ROBERT A. COHEN
 19
 19
 20   FRIEDMAN KAPLAN SEILER & ADELMAN LLP
 20        Attorneys for Interested Parties Aurelius Capital Partners
 21        and Blue Angel
 21   BY:  EDWARD A. FRIEDMAN
 22        DANIEL B. RAPPORT
 22
 23
 23   GIBSON DUNN & CRUTCHER LLP
 24        Attorneys for Plaintiff NML Capital, Ltd.
 24   BY:  MATTHEW D. MCGILL
 25
                     SOUTHERN DISTRICT REPORTERS, P.C.
                              (212) 805-0300


                                                                  2
      E7mrnmlm
  1            APPEARANCES
  2
  2   MILBERG LLP
  3        Attorneys for Varela plaintiffs
  3   BY:  MICHAEL C. SPENCER
  4
  4
  5   DAVIS POLK & WARDWELL LLP
  5        Attorneys for Citibank
  6   BY:  KAREN E. WAGNER
  6        JAMES L. KERR
  7
  7
  8   LATHAM & WATKINS LLP
  8        Attorneys for the Euro Bondholders
  9   BY:  CHRISTOPHER J. CLARK
  9        CRAIG A. BATCHELOR
 10
 10
 11   REED SMITH LLP
 11        Attorneys for The Bank of New York Mellon, as Indenture
 12        Trustee
 12   BY:  ERIC A. SCHAFFER
 13        NEIL GRAY
 13
 14
 14   LEVI LUBARSKY & FEIGENBAUM LLP
 15        Attorneys for JPMorgan Chase Bank N.A.
 15   BY:  ANDREA LIKWORNIK WEISS
 16        ALAN H. SCHEINER
 16
 17
 17   MORGAN LEWIS & BOCKIUS LLP
 18        Attorneys for Clearstream Banking
 18   BY:  JOHN M. VASSOS
 19
 19
 20   GREENFIELD STEIN & SENIOR LLP
 20        Attorneys for Euroclear Bank
 21   BY:  PAUL T. SHOEMAKER
 21
 22
 22
 23   DANIEL POLLACK
 23        Special Master
 24
 25
                     SOUTHERN DISTRICT REPORTERS, P.C.
                              (212) 805-0300


                                                                  3
      E7mrnmlm
  1
  2            (Case called)
  3            THE COURT:  We have certain motions to be taken care
  4   of.  I'll take them in any order.  I suppose the logical order
  5   would be to deal with the motion regarding the Citibank
  6   situation in Argentina.  Who wants to speak about that motion?
  7            MR. FRIEDMAN:  Your Honor, Edward Friedman on behalf
  8   of all of the plaintiffs.  I will address that motion.  I'm
  9   with the firm of Friedman Kaplan Seiler & Adelman, attorneys
 10   for the Aurelius and Blue Angel plaintiffs.  Mr. Cohen on
 11   behalf of NML and I and other plaintiffs' counsel have decided
 12   that I will have the honor of addressing this motion on before
 13   your Honor on behalf of all the plaintiffs.
 14            THE COURT:  Go ahead.
 15            MR. FRIEDMAN:  Shall I go to the lectern?
 16            THE COURT:  That would help.
 17            MR. FRIEDMAN:  May it please the Court, this is a
 18   motion for partial reconsideration of your Honor's June 27
 19   order with respect to Citibank.  Citibank had made a motion for
 20   clarification of the injunction, sometimes referred to as the
 21   amended February 23 orders.
 22            In granting Citibank's motion for clarification, your
 23   Honor clarified that the amended February 23 orders do not as a
 24   matter of law prohibit payments by Citibank N.A.'s Argentina
 25   branch on peso- and U.S. dollar-denominated bonds governed by
                     SOUTHERN DISTRICT REPORTERS, P.C.
                              (212) 805-0300


                                                                  4
      E7mrnmlm
  1   Argentine law and payable in Argentina.  This motion for
  2   reconsideration relates only to the U.S. dollar-denominated
  3   bonds.  We are not challenging your Honor's ruling that
  4   Citibank can pay the peso-denominated bonds.
  5            With respect to the U.S. dollar-denominated bonds,
  6   however, we believe there are numerous grounds for
  7   reconsideration, and we are respectfully requesting that your
  8   Honor confirm that the U.S. dollar-denominated bonds are in
  9   fact covered by the amended February 23 orders.
 10            THE COURT:  How are they covered?
 11            MR. FRIEDMAN:  The first basis, your Honor, is that
 12   the U.S. dollar-denominated bonds are not simply paid in
 13   Argentina.  What the record shows, and this is a filing
 14   yesterday by Euroclear, what the record shows is that the funds
 15   moved from Citibank with respect to these U.S. dollar-
 16   denominated bonds to Euroclear.  Euroclear --
 17            THE COURT:  They are simply clearinghouses.  They
 18   don't act as banks.  I don't understand this motion, I'll be
 19   very frank with you.
 20            MR. FRIEDMAN:  If I may, your Honor, I'll try to very
 21   briefly address a few basic points.  I'll come back to the
 22   payment process.  The first basic point is that in contrast to
 23   the peso-denominated bonds, the U.S. dollar-denominated bonds
 24   are external indebtedness within the --
 25            THE COURT:  I have read that brief.  Couldn't we
                     SOUTHERN DISTRICT REPORTERS, P.C.
                              (212) 805-0300


                                                                  5
      E7mrnmlm
  1   exercise a little common sense what we have under the major
  2   order is the great bulk, more than bulk, we have the exchange
  3   bonds covered by that order and we have the pari passu, but the
  4   bonds are the exchange bonds.  It is my understanding that the
  5   bonds being talked about in your motion are not part of the
  6   exchange.  Am I right or wrong?
  7            MR. FRIEDMAN:  Respectfully, your Honor, that would
  8   not be correct.  These U.S. dollar-denominated bonds are
  9   unquestionably part of the bonds that were issued in the 2005
 10   and 2010 exchanges.  In those exchanges the exchange bonds that
 11   were issued and the exchange bonds that were external
 12   indebtedness were issued under the laws of the U.S., the UK,
 13   Argentina, and Japan.  All of those bonds are exchange bonds.
 14            THE COURT:  Where are they payable?
 15            MR. FRIEDMAN:  The payment process, your Honor, for
 16   all of those --
 17            THE COURT:  They go through the indenture trustee,
 18   right?
 19            MR. FRIEDMAN:  Not for the Japanese and the Argentine
 20   law exchange bonds.
 21            THE COURT:  I'm glad you mentioned the Japanese.  We
 22   will get back to the Japanese in a little while.  You're saying
 23   the exceptions are those Argentine bonds and the Japanese
 24   bonds.  We'll get to the Japanese later.  I want to talk now
 25   about those particular Argentine bonds.  They are not payable
                     SOUTHERN DISTRICT REPORTERS, P.C.
                              (212) 805-0300



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