Thursday, September 4, 2014

NML warns of 'contempt, risks' to third parties which enter new debt swap

By Constanza Heller

In a teleconference today presided over by the head of the American Task Force Argentina (ATFA) Robert Shapiro, NML Capital Senior Legal Counsel and Dechert Partner Robert A. Cohen warned that “any third party” that agreed on the local payment of debt set by a bill that has been just passed by the Senate, could face a “contempt” motion and put their activities “at risk.”

“It is a blatant violation of the court orders because it prohibits the change mechanism and the judge specifically said it would be illegal and must not happen. Argentina has chosen to ignore that and we will be taken the proper steps to make sure that plan is not implemented and that third parties are held in contempt of court,” Cohen said adding that “it is obvious that any third party that participated in the effort to evade (the court ruling) will subject itself for contempt and damages for their activities; their activities would be at risk.”

In a 50-minute call, Cohen explained NML was following investigations by Argentina’s attorneys Guillermo Marijuán and José María Campagnoli over alleged funds of business tycoons Lázaro Báez and Cristóbal López. “Funds that will be recovered for our clients,” the lawyer said alluding to “millons of dollars" that Báez and López would have “laundered” for the Cristina Fernández de Kirchner administration abroad.

Vaca Muerta and deal with private banks

Queried by the Buenosairesherald.com about NML’s strategy to “recover” such assets and if in that agreements reached with Chevron to develop the resocurce-rich Vaca Muerta region in the southern province of Neuquén could be jeopardized, Cohen said they were “looking to all activities to recover our assets.”

“It will be a mistake to disclose our strategy (but) we are looking to all activities to recover our assets,” he said.

About negotiations being resumed with private-sector banks and companies that could be interested in buying Argentine sovereign debt still under US jurisdiction, Robert Cohen told theBuenosairesherald.com that NML was “open to talking with anyone who has a solution” but that they “haven’t heard” of that possibility yet. “It is possible but I don’t hold much to it,” he affirmed.

By the end of the teleconference, Cohen took the opportunity to deny any investigation over the daughter of President Cristina Fernández de Kirchner, Florencia Kirchner, carried out by the hedge fund he represents. “We have done nothing (…) Versions are inaccurate. We have served subpoenas that had anything to do with her,” Cohen said referring to a “story planted” by the government of Argentina instead.

“This is a process that will continue until the order of the US court, which Argentina repeatedly pledged to honour, until it is honoured,” head of the ATFA group lobbing for so called vulture funds Shapiro affirmed adding the legal dispute with vulture funds has led to “enormous” and “unnecessary” costs for “the government, the economy and the people” of Argentina.