REPUBLIC OF ARGENTINA
MINISTRY OF TREASURY AND PUBLIC FINANCE
Press ReleaseJuly 20, 2016
On February 5, 2016, the Ministry of Treasury and Public Finance announced the terms of a proposal to settle claims in respect of defaulted Argentine bonds (the “February 5 Proposal”). The Argentine Congress approved the terms of the February 5 Proposal on March 31, 2016. In furtherance of the February 5 Proposal, the Ministry of Treasury and Public Finance hereby informs holders of defaulted bonds of the Republic governed by German law (the “German Bonds”) that it (i) has appointed Morrow Sodali as Information Agent and (ii) is completing the arrangements required to allow such holders to avail themselves of the February 5 Proposal as further described below.
1. Fast Track Settlement
To facilitate a settlement of their outstanding claims on an expeditious basis, holders of German Bonds listed in Annex 1 which are in central custody (“Eligible Bonds”) will be entitled to fully and finally settle their claims by tendering their Eligible Bonds for a total cash payment equal to 150% of the principal amount of the Eligible Bonds subject to the settlement (the “Settlement Amount”) on an expedited basis (the “Fast Track Settlement”). Eligible Bonds will need to be tendered together with any and all accrued and unpaid interest and, if applicable, legal fees, and claims under any payment order, judgment, arbitral award, cost or other order that such holder has obtained or may obtain in the future against Argentina with respect to any Eligible Bonds tendered, for no additional consideration. The Republic will not pay any additional amount on account of interest or any legal costs.
The Fast Track Settlement will also be available to holders of Eligible Bonds who have obtained a payment order, judgment or arbitral award in respect of Eligible Bonds if the amount acknowledged by the payment order, judgment or arbitral award together with any applicable legal updating of judicial interest through January 31, 2016 (“Judgment Value”) is at least equal to the Settlement Amount. Any such holders will receive only the Settlement Amount, but not the higher Judgment Value.
Eligible Bonds will only be accepted if they are tendered together with the right to receive any accrued and unpaid interest through the date of settlement, as will be set out in the implementing documentation.
The cash tender offer will be made subject to customary requirements and conditions, including the holder’s acknowledgement of the full and final settlement of all claims under the Eligible Bonds (including claims for accrued and unpaid interest and, if applicable, legal fees, and claims under any payment order, judgment, arbitral award, cost or other order that it has obtained or may obtain in the future against Argentina) and, if applicable, an undertaking to discontinue and withdraw (with each party to bear its own attorneys’ fees and costs, except that the Republic shall not bear any court fees), including the filing of stipulations of dismissals, from any pending litigation in respect of the Eligible Bonds with prejudice, to deliver all enforceable copies (vollstreckbare Ausfertigung) of any payment order, court judgment, arbitral award, cost or other order issued against Argentina, with respect to the Eligible Bonds, and an irrevocable waiver of the right to enforce any payment order, court judgment, arbitral award, cost or other order against the Republic with respect to any Eligible Bonds tendered, effective upon payment of the respective amounts.
Under the Fast Track Settlement, the Republic will not assume, indemnify or reimburse any legal costs, including under any court or other order rendered against the Republic, with respect to any Eligible Bonds validly tendered.
The Fast Track Settlement will not be available to the following categories of German Bonds (“Other Bonds”):
- Eligible Bonds with a Judgment Value below 150% of the principal amount of such bonds,
- Eligible Bonds which are not in central custody, and
- German Bonds listed in Annex 2.
However, the Republic intends to settle claims with holders of Other Bonds described above that complete an individual verification procedure (“Individual Settlement”). The settlement of claims in respect of Other Bonds pursuant to the Individual Settlement will be subject to customary requirements and conditions, including the holder’s acknowledgement of the full and final settlement of all claims (including any accrued and unpaid interest) under the Other Bonds subject to the settlement and, if applicable, an undertaking to discontinue and withdraw (with each party to bear its own attorneys’ fees and costs, except that the Republic shall not bear any court fees), including the filing of stipulations of dismissal, from any pending litigation in respect of the Other Bonds with prejudice, to deliver all enforceable copies (vollstreckbare Ausfertigung) of any payment order, judgment, arbitral award, cost or other order issued against the Republic with respect to the Other Bonds, and an irrevocable waiver of the right to enforce any payment order, judgment, arbitral award, cost or other order against the Republic with respect to the Other Bonds, effective upon payment of the respective amounts.
Holders of Other Bonds that satisfy the requirements for the Individual Settlement will be eligible to settle their claims under the Other Bonds (including for accrued and unpaid interest and, if applicable, legal fees, and claims under any payment order, judgment, arbitral award, cost or other order that the holder of Other Bonds has obtained or may obtain in the future against Argentina) for the Settlement Amount or, if lower, the Judgment Value. Other Bonds will only be accepted for settlement of outstanding claims if they are tendered together with the coupons and/or right to receive any accrued and unpaid interest through the date of settlement.
Under the Individual Settlement, the Republic will not assume, indemnify or reimburse any legal costs, including under any court or other order rendered against the Republic with respect to Other Bonds.
Notwithstanding the above, holders of the following Other Bonds will not be entitled to the February 5 Proposal:
- holders of German Bonds listed in Annex 2 whose claims for principal have become extinct or time-barred, unless they have obtained a payment order, judgment, arbitral award or other order against the Republic or initiated litigation in respect of the principal amount with the effect of interrupting or tolling the statute of limitation with respect to the principal amount of such bonds, and
- holders of Eligible Bonds of the series DE0001354751, DE0002488509, DE0001319507 and DE0004500558, not in central custody if the holders fail to submit a “certificate of presentment” (Vorlegungsbescheinigung) with respect to the underlying principal.
| Annex 1 | ||
|---|---|---|
| DE0001319507 | DE0001325017 | DE0001340917 |
| DE0001348100 | DE0001354751 | DE0001767101 |
| DE0001954907 | DE0001974608 | XS0103457585 |
| DE0002466208 | DE0002483203 | DE0002488509 |
| DE0002923851 | DE0002929452 | DE0002966900 |
| DE0002998952 | DE0003045357 | DE0004103007 |
| DE0004103015 | DE0004500558 | DE0004509005 |
| DE0005450258 |
| Annex 2 | ||
|---|---|---|
| DE0001300200 | DE0001308609 | DE0001340909 |
| DE0003527966 | DE0003538914 | DE0001904308 |
| DE0003089850 |
ELIGIBILITY CHART
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