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1 UNI TED STATES DI STRI CT COURT
1 SOUTHERN DI STRI CT OF NEWYORK
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3 NML CAPI TAL, LTD. ,
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4 Pl ai nt i f f ,
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5 v. 08 CV 6978 ( PGG)
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6 THE REPUBLI C OF ARGENTI NA,
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7 Def endant .
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8 New Yor k, N. Y.
9 Sept ember 19, 2014
9 4: 42 p. m.
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10 Bef or e:
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11 HON. THOMAS P. GRI ESA,
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12 Di st r i ct J udge
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13 APPEARANCES
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14 DAVI S POLK & WARDWELL
15 At t or neys f or Def endant Ci t i bank
15 BY: KAREN WAGNER
16 J AMES KERR
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SOUTHERN DI STRI CT REPORTERS, P. C.
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1 ( Case cal l ed)
2 THE COURT: Let ' s st ar t by j ust put t i ng on t he r ecor d
3 what has happened t oday. An appeal was ar gued yest er day i n t he
4 Second Ci r cui t and t oday t he ci r cui t i ssued an or der , t he next
5 t o l ast par agr aph of whi ch says: We decl i ne t o f i nd
6 j ur i sdi ct i on because t he or der appeal ed f r omi s a
7 cl ar i f i cat i on, not a modi f i cat i on of t he amended Febr uar y 23,
8 2012 or der . However , not hi ng i n t hi s cour t ' s or der i s i nt ended
9 t o pr ecl ude Ci t i bank f r omseeki ng f ur t her r el i ef f r omt he
10 di st r i ct cour t .
11 And so, Ms. Wagner .
12 MS. WAGNER: Good af t er noon, your Honor .
13 THE COURT: Can you go back t o t he l ect er n.
14 MS. WAGNER: I cer t ai nl y can.
15 THE COURT: And Mr . ?
16 MR. KERR: Ker r .
17 MS. WAGNER: J ames Ker r .
18 THE COURT: Go ahead.
19 MS. WAGNER: Okay. Your Honor , I ' massumi ng you' r e
20 i nt er est ed i n what we pl an t o do.
21 THE COURT: I ' mi nt er est ed i n seei ng i f you ar e
22 seeki ng f ur t her r el i ef .
23 MS. WAGNER: Your Honor , we wi l l be seeki ng f ur t her
24 r el i ef . Obvi ousl y, si nce we do not have any adver sar i es her e,
25 we woul dn' t di scuss t he subst ance so much. But our i nt ent i on
SOUTHERN DI STRI CT REPORTERS, P. C.
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1 woul d be t o move by or der t o show cause next week bef or e your
2 Honor seeki ng f or pr obabl y a mot i on f or r econsi der at i on and/ or
3 r ef or mat i on of t he i nj unct i on t o addr ess i t s appl i cat i on t o
4 Ci t i bank and make ar gument s t hat had not been made pr evi ousl y,
5 as wel l as ar gument s t hat have been made pr evi ousl y.
6 As your Honor knows, we ar e f aci ng a payment deadl i ne
7 of Sept ember 30, so we ar e l i kel y al so t o move f or a st ay.
8 THE COURT: A st ay of what ?
9 MS. WAGNER: A st ay of t he appl i cat i on of t he
10 i nj unct i on t o t he payment t o be made by Ci t i bank on
11 Sept ember 30. But we haven' t f ul l y f or mul at ed - - we do not
12 have t he paper s yet and we haven' t f ul l y f or mul at ed our
13 posi t i on, but we i nt end t o move next week.
14 THE COURT: Wel l , we can' t di scuss anyt hi ng of
15 subst ance t oday. You' r e l et t i ng t he Cour t know of your
16 i nt ent i on.
17 I ' d j ust l i ke t o ask you t hi s. Maybe t hi s i s i n t he
18 r ecor d bef or e me mul t i pl e t i mes. I i n ef f ect per mi t t ed
19 Ci t i bank t o make an i nt er est payment l ast summer , r i ght ?
20 MS. WAGNER: You per mi t t ed a payment on J une 30, yes.
21 THE COURT: And I assume t hat payment was made.
22 MS. WAGNER: I t was made.
23 THE COURT: And t he ef f ect of what I ent er ed at t hat
24 t i me was t hat what ever per mi ssi on I gr ant ed t hen was a one- t i me
25 per mi ssi on and i t was i mpl i ci t i t di d not af f ect Sept ember 30
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1 or December 31, et c. , r i ght ?
2 MS. WAGNER: You ent er ed an or der f i r st , your Honor ,
3 t hat sai d t he i nj unct i on di d not appl y t o Ci t i bank, t o payment s
4 by Ci t i bank on Ar gent i ne l aw bonds. And t hen you ent er ed an
5 or der t owar d t he end of J ul y t hat sai d a one- t i me payment was
6 per mi t t ed, and t hat i s t he or der t hat went up on appeal .
7 THE COURT: What i ssue was appeal ed f r om?
8 MS. WAGNER: The i ssue on appeal was whet her t he or der
9 t hat sai d t he payment coul d onl y be a one- t i me payment ,
10 whet her - - I mean t he cour t deci ded i t was a r equest f or
11 cl ar i f i cat i on r at her t han a modi f i cat i on.
12 THE COURT: What was t he appeal ? You appeal ed, r i ght ?
13 MS. WAGNER: We appeal ed on t he same gr ounds t hat we
14 r ai sed bef or e your Honor , t hat we di dn' t t hi nk t he or der shoul d
15 appl y t o us.
16 THE COURT: The Febr uar y 23 or der ?
17 MS. WAGNER: Cor r ect .
18 THE COURT: That was your gr ounds of appeal ?
19 MS. WAGNER: Our gr ounds of appeal was t hat we t hought
20 your Honor ' s or i gi nal deci si on whi ch sai d t hat f or t he r easons
21 we r ai sed i n our mot i on f or cl ar i f i cat i on, we di d not t hi nk t he
22 i nj unct i on or der appl i ed t o us. Your Honor agr eed wi t h us at
23 f i r st , and t hen your Honor i ssued an or der sayi ng t hat
24 excl usi on woul d onl y be ef f ect i ve f or one payment and af t er
25 t hat , t he or der woul d appl y t o us. So we appeal ed on t he
SOUTHERN DI STRI CT REPORTERS, P. C.
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1 gr ounds t hat we di d not t hi nk t he or der shoul d be appl i ed t o
2 us.
3 THE COURT: You mean t he Febr uar y 23.
4 MS. WAGNER: The Febr uar y 23 or der , yes.
5 THE COURT: Di dn' t a si mi l ar i ssue come up i n 2013 or
6 i s my memor y wr ong?
7 MS. WAGNER: We had moved i n 2013 f or cl ar i f i cat i on of
8 t he Febr uar y 23 i nj unct i ons, but your Honor decl i ned t o r ul e at
9 t hat t i me because t hose i nj unct i ons wer e on appeal .
10 THE COURT: So I di dn' t make any r ul i ng at al l - -
11 MS. WAGNER: Not at t hat t i me, no, your Honor .
12 THE COURT: - - i n 2013.
13 MS. WAGNER: Cor r ect .
14 THE COURT: And di d you come back t hi s summer or di d
15 some ot her par t y?
16 MS. WAGNER: We came back t hi s summer . We came back
17 i n May because t he Supr eme Cour t decl i ned t o gr ant cer t i or ar i
18 posi t i on on t he i nj unct i on or der and so t he st ay of t hat or der
19 was l i f t ed and i t came i nt o ef f ect .
20 THE COURT: The st ay of what or der ?
21 MS. WAGNER: The st ay of t he Febr uar y 23 or der .
22 So t hen we came back t o you and sai d, okay, now t hi s
23 i s r i pe, so woul d you pl ease deci de our appl i cat i on sayi ng t hat
24 i t shoul d not be appl i ed t o Ci t i bank' s payment s.
25 THE COURT: And I i n ef f ect gr ant ed t hat , di d I not ?
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1 MS. WAGNER: You gr ant ed i t , yes.
2 THE COURT: Now, I asked you at t he begi nni ng but l et
3 me ask you agai n. We wi l l cer t ai nl y have a hear i ng next week.
4 What i s i t t hat you wi sh t o r ai se at t hat hear i ng?
5 MS. WAGNER: Your Honor , si nce we, l i ke you, j ust
6 hear d about t he Second Ci r cui t deci si on, we haven' t t ot al l y
7 envel oped i t . But i t wi l l be some of t he or i gi nal i ssues t hat
8 we r ai sed bef or e, and t her e wi l l be a coupl e of new i ssues t hat
9 we bel i eve have come up.
10 THE COURT: The bef or e i ssues ar e what ?
11 MS. WAGNER: Ther e wer e some ar gument s, your Honor ,
12 t hat Ci t i bank, Ci t i bank Ar gent i na i s a separ at e ent i t y and
13 t her ef or e shoul d not be i ncl uded i n t he i nj unct i on, t hat t he
14 doct r i ne of act of st at e and t he ot her doct r i ne of sover ei gn
15 compul si on woul d appl y, t hat woul d al so be a basi s of
16 excl udi ng, and t hose ki nds of i ssues t hat we' ve ar gued bef or e.
17 And t her e ar e a coupl e of new i ssues, your Honor .
18 Some of t hemyou' r e somewhat f ami l i ar wi t h and t hat i s whet her
19 t he Ar gent i ne l aw bonds ar e subj ect t o t he i nj unct i on as a
20 mat t er of f act , as wel l as as a mat t er of l aw.
21 And t hen t her e was a deci si on handed down t wo days ago
22 by t he Second Ci r cui t t hat addr esses a quest i on of whet her a
23 comi t y hear i ng must be hel d i n a si t uat i on l i ke t hi s. We woul d
24 addr ess t hat as wel l .
25 THE COURT: I ' d l i ke t o say t hi s and al l t he par t i es
SOUTHERN DI STRI CT REPORTERS, P. C.
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1 can get copi es of t hi s, but I t hi nk al l par t i es shoul d be
2 appr i sed of what I ' mgoi ng t o say.
3 I t was my vi ew and my i nt ent i on t o t r eat what we cal l
4 t he Ar gent i ne l aw bonds as di f f er ent f r omt he bonds cover ed by
5 t he Febr uar y 23 or der , and I t hi nk t hat was expr essed i n what I
6 i ssued.
7 And I t hi nk you agr ee wi t h t hat , r i ght ?
8 MS. WAGNER: I cer t ai nl y agr ee t hey shoul d be t r eat ed
9 di f f er ent l y.
10 THE COURT: Now, l ook, t he r eason I ' mmaki ng t hi s
11 st at ement and you' r e t he onl y one her e, t he onl y par t y
12 r epr esent ed, what ever br i ef i ng goes on now shoul d t ake i nt o
13 account what I ' msayi ng. And I woul d ask whoever i s br i ef i ng
14 t o heed what I ' msayi ng and not conf use i t . I ' mr epeat i ng
15 mysel f .
16 I t was my vi ew and st i l l i s my vi ew t hat t he Ar gent i ne
17 l aw bonds i ssued i n Ar gent i na, payabl e i n Ar gent i na, subj ect t o
18 Ar gent i ne l aw, ar e di f f er ent f r omt he bonds subj ect t o t he
19 Febr uar y 23 or der . And whet her t hey' r e payabl e ext er nal l y or
20 not , t he f act or s I ' ve t al ked about make t hemdi f f er ent .
21 Now, i f t he Cour t has t he r esponsi bi l i t y of deal i ng
22 wi t h any i ssue about t he payment due i n Ar gent i na Sept ember 30
23 or December 31, et c. , t hen t hat wi l l have t o emer ge f r om
24 r equest s t o t he Cour t and br i ef i ng t o t he Cour t as necessar y.
25 But t he par t i es shoul d know t hat what ever i ssues t her e ar e
SOUTHERN DI STRI CT REPORTERS, P. C.
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1 about Ci t i bank and Ar gent i na, Sept ember 30 or December 31, i t
2 i s t he vi ew of t he Cour t t hat what we' r e deal i ng wi t h and what
3 your appl i cat i ons r el at e t o ar e bonds t hat ar e di f f er ent f r om
4 t he bonds cover ed by t he Febr uar y 23 or der .
5 So I ' l l awai t your or der t o show cause and we' l l
6 cer t ai nl y, I ' msur e, be abl e t o schedul e a pr ompt hear i ng.
7 You' r e goi ng t o submi t an or der t o show cause on Monday?
8 MS. WAGNER: We wi l l do our ver y best t o do t hat .
9 Yes, your Honor .
10 THE COURT: Al l r i ght . I ' l l awai t t hat . Thank you.
11 MS. WAGNER: Thank you ver y much.
12 J ust t o be cl ear , i f I under st and, your Honor , t he
13 t r anscr i pt can be ci r cul at ed t o our adver sar i es as wel l ?
14 THE COURT: Of t oday?
15 MS. WAGNER: Of t oday.
16 THE COURT: Of cour se.
17 MS. WAGNER: Thank you ver y much, your Honor .
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