NML Capital, Ltd., a private investment firm that owns defaulted securities issued by the Republic of Argentina, has issued the following statement regarding Argentina’s decision to postpone the settlement of its pending Exchange Offer because of litigation surrounding NML’s and other creditors’ attachment of bonds irrevocably accepted by Argentina pursuant to the Exchange Offer:
“Argentina’s claim that the attachment of $7 billion of the $62 billion of tendered bonds prevents it from settling the Exchange Offer is baseless. Argentina can complete the Exchange Offer at any time by delivering new securities to all of the tendering bondholders and taking possession of over $55 billion in tendered bonds that are not subject to attachment,” according to a press release from the company. “In fact, having already announced its acceptance of the tendered securities, Argentina is contractually required to settle the exchange in that manner.
“The fact that $7 billion of the tendered bonds must remain at The Bank of New York until the conclusion of the pending court proceedings does not, in our view, excuse Argentina in any way from its legal obligation to deliver new securities to the bondholders who tendered,” continued the release. “Moreover, even the attached bonds could be released if Argentina would deposit the amounts it owes NML and the other attaching creditors into an account controlled by the Court. Argentina has made a choice not to follow that course, a choice that reflects its decision to rebuff creditors who insist that Argentina honor its debts.
“We think that the attachments will be upheld by the United States Court of Appeals for the Second Circuit. Whatever that court decides, NML will, of course, abide by the decision. We trust that Argentina also will recognize and abide by the decisions of the appropriate U.S. legal authorities in this case,” concluded the release.