Legal Proceedings
The Settlement
As of August 31, 2020, agreements in principle have been executed with holders of approximately 85% of the nominal amount of Untendered Debt outstanding as of December 31, 2015 (including in the calculation claims that the Republic considers time-barred and for which no agreements have been entered into).
As of August 31, 2020, payments to settling creditors had resulted in the dismissal of claims in the United States for an aggregate nominal amount of approximately U.S.$3.5 billion, plus interest, and the discharge of judgments in the amount of approximately U.S.$5.4 billion. Additional claimants in the District Court have entered into settlement agreements, upon payment of the amounts contemplated in such settlements, the claims are to be dismissed.
As of August 31, 2020, the Republic has settled with holders of German law governed bonds for a nominal amount of €750.1 million. Procedures to permit the settlement and cancellation of other German law governed bonds that are held in physical form are under review.
Individual litigation in the United States
As of August 31, 2020, 37 complaints involving bonds defaulted in 2001 with an alleged nominal amount of approximately U.S.$336 million were pending in court. In these actions, judgments for a total value of approximately U.S.$393 million have been entered involving bonds with a nominal amount of approximately U.S.$169 million. Argentina will seek to resolve these claims via a negotiated settlement.
GDP warrant litigation (United States and United Kingdom)
On June 8, 2020, the Republic filed a motion in the District Court to dismiss the amended complaints for non-payment of amounts allegedly due under such GDP-linked warrants for the year 2013 that had been filed by the plaintiffs on March 9, 2020. Plaintiffs filed their opposition to the Republic’s motion to dismiss on August 24, 2020. The Republic filed its reply on September 21, 2020. The District Court’s decision on the Republic’s motion to dismiss was pending as of the date of this Annual Report.
On January 13, 2020, the Republic filed its amended defense in the claim filed in the United Kingdom by four claimants based on purported ownership of approximately €8.5 billion notional amount of GDP-linked warrants. On March 4, 2020, the Republic issued a strike out/summary judgment application, which was rejected on July 21, 2020. On August 10, 2020, the Republic filed an application for permission to appeal, which was pending as of September 30, 2020.
Pari passu litigation
While plaintiffs have brought claims for breach of the pari passu clause after the pari passu injunction was lifted in April 2016, as of the date of this Annual Report, no request for pari passu injunctions or damages made after April 22, 2016 has been granted by the District Court. See “Public Sector Debt—Legal Proceedings—Pari Passu Litigation.”
Litigation in Germany
As of August 31, 2020, final judgments entered for a total amount of approximately €120.0 million in principal plus interest and costs in suits on Untendered Debt brought against Argentina in Germany remain unsettled, while claims seeking approximately €2.2 million in principal on defaulted debt, plus interest, have been filed in Germany although no final judgment has yet been rendered. The Republic has continued settling cases with holders of Untendered Debt governed by German law that are not time barred on a basis consistent with the February 2016 Settlement Proposal.
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Litigation in Spain
On May 25, 2020, a Spanish lower court rejected a request for attachment by the plaintiff of the matter involving a German bondholder’s effort to enforce a German judgement against the Republic. The plaintiff filed an application for review of the decision, which was rejected on July 15, 2020. The plaintiff has filed an application for clarification, which was pending as of August 31, 2020. See “Public Sector Debt—Legal Proceedings—Litigation in Spain.
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