SPECIALMASTERANNOUNCESSETTLEMENTOF15YEARBATTLEBETWEENARGENTINAAND

HOLDOUTHEDGEFUNDS
DanielA.Pollack,SpecialMasterappointedtopresideoversettlementnegotiationsbetween
theRepublicofArgentinaanditsHoldoutBondholders,thismorningissuedthefollowing
statement:
Itgivesmegreatestpleasuretoannouncethatthe15yearpitchedbattlebetweenthe
RepublicofArgentinaandElliottManagement,ledbyPaulE.Singer,isnowwellonitswayto
beingresolved.ThepartieslastnightsignedanAgreementinPrincipleafterthreemonthsof
intense,aroundtheclocknegotiationsundermysupervision.TheAgreementinPrinciple,if
consummated,willpayNMLCapitalLtd,thefundmanagedbyElliott,andseveralotherfunds
ofothermanagerswhohadsuedalongsideNML,theaggregatesumofapproximately$4.653
billiondollarstosettleallclaims,bothintheSouthernDistrictofNewYorkandworldwide.
Thisisagiantstepforwardinthislongrunninglitigation,butnotthefinalstep.The
AgreementinPrincipleissubjecttoapprovalbytheCongressofArgentinaand,specifically,the
liftingoftheLockLawandtheSovereignPaymentLaw,enactedunderanearlier
Administrationandwhichwouldbarsuchsettlements.Thereafter,Argentinacontemplatesa
capitalraiseintheglobalfinancialmarkets,whichwouldbeusedtofundthepayments.The
fourholdoutBondholderswhoaresignatoriestothisAgreementinPrinciple,haveagreed
nottoattempttoattachorotherwiseinterferewiththatcapitalraise.Uponpayment,the
InjunctionsenteredseveralyearsagoagainstArgentinabyJudgeThomasP.Griesawould
automaticallydissolveifJudgeGriesasIndicativeRulingofFebruary19isconvertedintoafinal
OrdervacatingtheInjunctions.Thepartieshaveagreedtotakeallstepsnecessaryto
cooperatewithmeinmycapacityasSpecialMasterandwitheachothertoeffecta
consummationoftheAgreementinPrincipleandaterminationofthelitigation.Itishopedby
thepartiesthatallnecessarystepscanbetakeninaperiodofsixweeks.TheAgreementin
Principle,ifconsummated,willpaytheFundsmanagedbyElliottManagement,Aurelius
Capital,DavidsonKempnerandBracebridgeCapital,75%oftheirfulljudgmentsincluding
principalandinterest,plusapaymenttosettleclaimsoutsidetheSouthernDistrictofNew
Yorkandcertainlegalfeesandexpensesincurredbythemovera15yearperiod.
Therearemanypeoplewhohavedevoteduntoldhoursorspecialtalents,orboth,tomaking
thissettlementpossible.ForemostamongthemisHon.ThomasP.Griesa,theFederalJudge
whopresidedoverallcasesinreArgentinaDebtLitigationfor15years.Othersentitledto
greatestcreditarePresidentMauricioMacriofArgentina,whoimmediatelyuponhiselection
inNovember,setabouttochangethenegativecoursethattheRepublichadsteeredinthis
litigation,andhisSecretaryofFinanceLuisCaputo,wholedthedelegationthatmetwithmein
mycapacityasSpecialMasterandwiththeholdoutBondholdersforcountlesshours,with
patience,goodwillandintelligence.HewasablyassistedbySantiagoBausili,UnderSecretary
ofFinance.AlsoinvolvedasimportantdecisionmakersforArgentinawere:AlfonsoPratGay,
MinisteroftheEconomy,andMarcosPenaandMarioQuintana,theChiefandViceChiefof
theCabinet.TheircoursecorrectionforArgentinawasnothingshortofheroic.Onthe
holdouthedgefundside,PaulE.Singerwasthecentralfigurewhoinvolvedhimselfintensely
withmeoverthepastseveralweeksonbehalfoftheholdoutBondholders.Hewasatough
butfairnegotiator.Hissecondincommand,JonPollock,alsomadeakeycontributiontothe

successofthenegotiations.Alloftheseniorprincipalsoftheholdouthedgefunds
demonstratedvasttalent.Nopartytoasettlementgetseverythingitseeks.Asettlementis,
bydefinition,acompromiseand,fortunately,bothsidestothisepicdisputefinallysawthe
needtocompromise,andhavedoneso.
Thissettlement,ifconsummated,togetherwithpriorAgreementsinPrinciplewithother
holdoutBondholders,resolvesover85%oftheclaimsofthosewithparipassuandme
tooInjunctions.Iwillcontinuetoserve,atthepleasureofJudgeGriesa,untilallclaimsare
resolved,bothwithrespecttotheconsummationofthiscentralAgreementinPrincipleandto
facilitatesettlementwithallotherholdoutBondholderswhowishtoresolvetheirclaims
withArgentina.Inshort,Iwillcontinuetohelpthewillingfindsolutions.
DanielA.Pollack(inmycapacityasSpecialMaster)