von unserem New Yorker Anwalt....wer den Kontakt sucht....rolfjkoch@web.de

As most of you already know, both Judge Griesa and the federal appellate court in New York (the Second Circuit) have approved our test case effort to enforce the pari passu / equal treatment provision in the bond indentures. The injunctions we obtained prohibit Argentina from paying other holders of “external debt” – notably, the Exchange Bondholders, who accepted the 2005 or 2010 swap offers – unless the test case plaintiffs are also paid “ratably”. “Ratable” in this case means full payment, because Argentina wants to make full payments of interest to the Exchange Bondholders. Full payment to our clients in this matter would include both principal and interest.

Argentina has asked the United States Supreme Court (in what is called a “cert petition) to review these rulings. Most cert petitions are denied. Probably the decision on this will be issued around the middle of next year.

For important legal reasons, so far we have litigated the pari passu issue only for a small group of “test case” bondholders who did not yet have judgments against Argentina. However, most of our clients already have judgments, and we will seek to extend the benefits of these rulings to our other clients as soon as the Supreme Court rules, assuming the cert petition is denied.

Many of you have read reports in the media about the pari passu litigation focusing on the Singer/Elliott and Aurelius hedge funds, with whom we are working closely on these matters. President Kirchner of Argentina calls them “vulture” funds in order to attract popular support. We constantly remind the media that many of the plaintiff bondholders are ordinary investors seeking to recover money they had saved for retirement. The media does not seem to find that as dramatic as focusing on “vulture” funds. Please be assured, however, that we are working as equal partners with these funds. We are the only law firm representing individual bondholders that is part of this effort.

We are always hopeful that Argentina will enter into negotiations for an acceptable resolution. So far, the government has not been willing to do so, and has only offered to re-open the prior swap offers, which we believe is wholly unacceptable.

Thank you for your interest and support. We will keep you informed about further developments as they occur.