Late on Wednesday, November 21, District Judge Griesa issued orders resolving the issues remanded to him by the Second Circuit in the Circuit Court’s decision of October 26. (Judge Griesa’s orders are all available on our Argentine Sovereign Debt webpage (www.shearman.com/argentine-sovereign-debt/).) In what appears to be a total victory for the plaintiffs in NML Capital., Ltd., v. Republic of Argentina, Judge Griesa ruled:
- That the plaintiffs were entitled to a “ratable payment” from Argentina equivalent to “100% of what is currently due to plaintiffs” if Argentina pays 100% of what is due to the Exchange Bondholders;
- That The Bank of New York, the Paying Agent on the Exchange Bonds (which are not in default), is subject to his Injunctions – meaning that funds paid to BNY for payment to the Exchange Bondholders are potentially available for payment instead to the plaintiffs; and
- That the stays of his Injunctions previously in place are lifted.
View full memo, "Don’t Cry for Me Argentine Bondholders: Judge Griesa Gives Plaintiffs TOTAL Victory"