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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF NEW YORK
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3 NML
CAPITAL, LTD., et al.,
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4 Plaintiffs,
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v. 08 CV
6978 (TPG)
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6 THE
REPUBLIC OF ARGENTINA,
Argument
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7 Defendant.
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9 New York, N.Y.
9 July
22, 2014
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10:30 a.m.
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Before:
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HON. THOMAS P. GRIESA,
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District Judge
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APPEARANCES
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DECHERT LLP
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Attorneys for Plaintiff NML Capital, Ltd.
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BY: ROBERT A. COHEN
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FRIEDMAN KAPLAN SEILER & ADELMAN LLP
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Attorneys for Interested Parties Aurelius Capital Partners
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and Blue Angel
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BY: EDWARD A. FRIEDMAN
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DANIEL B. RAPPORT
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GIBSON DUNN & CRUTCHER LLP
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Attorneys for Plaintiff NML Capital, Ltd.
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BY: MATTHEW D. MCGILL
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SOUTHERN DISTRICT
REPORTERS, P.C.
(212) 805-0300
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APPEARANCES
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MILBERG LLP
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Attorneys for Varela plaintiffs
3 BY: MICHAEL C. SPENCER
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DAVIS POLK & WARDWELL LLP
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Attorneys for Citibank
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BY: KAREN E. WAGNER
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JAMES L. KERR
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LATHAM & WATKINS LLP
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Attorneys for the Euro Bondholders
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BY: CHRISTOPHER J. CLARK
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CRAIG A. BATCHELOR
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REED SMITH LLP
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Attorneys for The Bank of New York Mellon, as Indenture
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Trustee
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BY: ERIC A. SCHAFFER
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NEIL GRAY
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LEVI LUBARSKY & FEIGENBAUM LLP
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Attorneys for JPMorgan Chase Bank N.A.
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BY: ANDREA LIKWORNIK WEISS
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ALAN H. SCHEINER
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MORGAN LEWIS & BOCKIUS LLP
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Attorneys for Clearstream Banking
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BY: JOHN M. VASSOS
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GREENFIELD STEIN & SENIOR LLP
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Attorneys for Euroclear Bank
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BY: PAUL T. SHOEMAKER
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DANIEL POLLACK
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Special Master
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SOUTHERN DISTRICT
REPORTERS, P.C.
(212) 805-0300
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(Case called)
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THE COURT: We have certain
motions to be taken care
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of. I'll take them in any
order. I suppose the logical order
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would be to deal with the motion regarding the Citibank
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situation in Argentina. Who wants
to speak about that motion?
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MR. FRIEDMAN: Your Honor, Edward
Friedman on behalf
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all of the plaintiffs. I will address
that motion. I'm
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with the firm of Friedman Kaplan Seiler & Adelman, attorneys
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the Aurelius and Blue Angel plaintiffs.
Mr. Cohen on
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behalf of NML and I and other plaintiffs' counsel have decided
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that I will have the honor of addressing this motion on before
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your Honor on behalf of all the plaintiffs.
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THE COURT: Go ahead.
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MR. FRIEDMAN: Shall I go to the
lectern?
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THE COURT: That would help.
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MR. FRIEDMAN: May it please the
Court, this is a
18 motion for partial reconsideration of your
Honor's June 27
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order with respect to Citibank.
Citibank had made a motion for
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clarification of the injunction, sometimes referred to as the
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amended February 23 orders.
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In granting Citibank's motion for clarification, your
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Honor clarified that the amended February 23 orders do not as a
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matter of law prohibit payments by Citibank N.A.'s Argentina
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branch on peso- and U.S. dollar-denominated bonds governed by
SOUTHERN DISTRICT REPORTERS,
P.C.
(212) 805-0300
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Argentine law and payable in Argentina.
This motion for
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reconsideration relates only to the U.S. dollar-denominated
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bonds. We are not challenging
your Honor's ruling that
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Citibank can pay the peso-denominated bonds.
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With respect to the U.S. dollar-denominated bonds,
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however, we believe there are numerous grounds for
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reconsideration, and we are respectfully requesting that your
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Honor confirm that the U.S. dollar-denominated bonds are in
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fact covered by the amended February 23 orders.
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THE COURT: How are they covered?
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MR. FRIEDMAN: The first basis,
your Honor, is that
12 the
U.S. dollar-denominated bonds are not simply paid in
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Argentina. What the record shows,
and this is a filing
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yesterday by Euroclear, what the record shows is that the funds
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moved from Citibank with respect to these U.S. dollar-
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denominated bonds to Euroclear.
Euroclear --
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THE COURT: They are simply
clearinghouses. They
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don't act as banks. I don't
understand this motion, I'll be
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very frank with you.
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MR. FRIEDMAN: If I may, your
Honor, I'll try to very
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briefly address a few basic points.
I'll come back to the
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payment process. The first basic
point is that in contrast to
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peso-denominated bonds, the U.S. dollar-denominated bonds
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external indebtedness within the --
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THE COURT: I have read that
brief. Couldn't we
SOUTHERN DISTRICT
REPORTERS, P.C.
(212) 805-0300
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exercise a little common sense what we have under the major
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order is the great bulk, more than bulk, we have the exchange
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bonds covered by that order and we have the pari passu, but the
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bonds are the exchange bonds. It
is my understanding that the
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bonds being talked about in your motion are not part of the
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exchange. Am I right or wrong?
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MR. FRIEDMAN: Respectfully, your
Honor, that would
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be correct. These U.S.
dollar-denominated bonds are
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unquestionably part of the bonds that were issued in the 2005
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2010 exchanges. In those exchanges the
exchange bonds that
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were issued and the exchange bonds that were external
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indebtedness were issued under the laws of the U.S., the UK,
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Argentina, and Japan. All of
those bonds are exchange bonds.
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THE COURT: Where are they
payable?
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MR. FRIEDMAN: The payment process,
your Honor, for
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of those --
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THE COURT: They go through the
indenture trustee,
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right?
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MR. FRIEDMAN: Not for the
Japanese and the Argentine
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exchange bonds.
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THE COURT: I'm glad you mentioned
the Japanese. We
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will get back to the Japanese in a little while. You're saying
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exceptions are those Argentine bonds and the Japanese
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bonds. We'll get to the Japanese
later. I want to talk now
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about those particular Argentine bonds.
They are not payable
SOUTHERN DISTRICT
REPORTERS, P.C.
(212) 805-0300
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