Mazzini v. Republic of Argentina

Full title: JORGE MARCELO MAZZINI, et al., Plaintiffs, v. THE REPUBLIC OF ARGENTINA…

Court: United States District Court, S.D. New York

Date published: Mar 31, 2005

No. 03 Civ. 8120 (TPG) (S.D.N.Y. Mar. 31, 2005)

Opinion

No. 03 Civ. 8120 (TPG).

March 31, 2005

OPINION

THOMAS GRIESA, Senior District Judge

INTRODUCTION

Plaintiffs in this case are owners of certain bonds issued by defendant The Republic of Argentina. The Republic defaulted on its bonds in December of 2001 during a profound fiscal crisis. Plaintiffs are suing to recover amounts due to them by virtue of the default and have moved for summary judgment. The Republic opposes the motion asserting various defenses. Plaintiffs also have moved to strike certain discovery requests made by the Republic.

Plaintiffs' motion for summary judgment on the bond obligations is granted in part and denied in part. Plaintiffs' motion to strike certain discovery requests is granted.

FACTS

The Bonds and the Default

Plaintiffs acquired certain bonds issued by the Republic. The bonds are governed by agreements that set forth the rights and obligations of the debtor and the creditor, including provisions governing terms of repayment, events of default, acceleration of defaulted loans, waivers of immunity, and forum selection. Some of the bonds at issue are governed by a Fiscal Agency Agreement between the Republic of Argentina and Bankers Trust Company, dated October 19, 1994 (the "1994 FAA"). Others of the bonds at issue are governed by a Fiscal Agency Agreement between the Republic of Argentina and Bankers Trust Company, dated December 10, 1993 (the "1993 FAA"). Finally, some of the bonds at issue are so-called Brady-Bonds, which are governed by a document entitled Floating Rate Bond Exchange Agreement, Dated as of December 6, 1992, Implementing Part I of the Republic of Argentina 1992 Financing Plan, Citibank, N.A., as Closing Agent (the "FRB" Agreement).

On December 24, 2001, the Republic declared a moratorium on payments of principal and interest on the external debt of the Republic. Plaintiffs brought this lawsuit for recovery of unpaid interest and claiming the right to accelerate payment of principal. The 1994 Fiscal Agency Agreement

The 1994 FAA is the same agreement that governed the bonds on which this court granted summary judgment to the plaintiffs inLightwater Corporation Ltd. v. The Republic of Argentina, 02 Civ. 3804 (TPG), 2003 WL 1878420 (S.D.N.Y. April 14, 2003). Section 22 of the 1994 FAA states that the Republic waives sovereign immunity and consents to jurisdiction in any state or federal court in the Borough of Manhattan in the City of New York. The 1994 FAA provides that failure to make any payment of principal or interest for 30 days after the applicable payment date constitutes an event of default. A declaration by the Republic of a moratorium on the payment of principal or interest on its public external indebtedness is also an event of default. Upon an event of default, a bondholder is entitled to give notice declaring the principal amount of the bonds held by it immediately due and payable.

The 1993 Fiscal Agency Agreement

The 1993 FAA is a similar agreement to the 1994 FAA. Section 20 of the 1993 FAA states that the Republic waives sovereign immunity and consents to jurisdiction in any state or federal court in the City of New York. Section 4 provides that the bonds "will be substantially in the form attached hereto as Exhibit 1." Exhibit 1 to the 1993 FAA provides that failure to make any payment of principal or interest for 30 days after the applicable payment date constitutes an event of default. A declaration by the Republic of a moratorium on the payment of principal or interest on its public external indebtedness is also an event of default. Upon an event of default of the type described above, a bondholder is entitled to give notice declaring the principal amount of the bonds held by it immediately due and payable.

The Floating Rate Bond Exchange Agreement

Section 6.07(a) of the FRB states that the Republic consents to jurisdiction in any state or federal court sitting in New York City. Section 6.07(d) of the FRB includes an irrevocable waiver by the Republic of its sovereign immunity. Section 9 of Exhibit 1A to the FRB, the Form of the Bearer Floating Rate Bond, and Section 9 of Exhibit 1B to the FRB, the Form of the Registered Floating Rate Bond, provide that failure to pay interest within 30 days after the applicable due date constitutes an event of default. A declaration by the Republic of a moratorium on the payment of principal or interest on its public external indebtedness also constitutes an event of default. Upon a continuing event of default, holders of 25% or more in aggregate outstanding principal amount of the bonds may declare the unpaid principal immediately due by written demand. The Specific Bonds at Issue

The bonds that are the subject of this action are listed below. Where adequate information has been provided by plaintiffs, the tables list each bond's beneficial owner(s), face value, CUSIP No. and/or ISIN No. and/or BB No., date of issuance, date of maturity, interest rate and interest payment schedule, date of purchase, notice of acceleration, contract documents and proof of ownership. The information contained in the following tables is drawn from Plaintiffs' Declarations and from the Supplemental Declarations of Plaintiffs in Further Support of Motion for Summary Judgment.

Table 1.

Plaintiff Bond Holder or Ezequiel Hernan Baclini and Patricia RuthBeneficial Owner: Caronna

Face Value: U.S. $180,000

CUSIP No., ISIN No., BB CUSIP No. 040114AH34; ISIN No. No.: US040114AH34

Date Of Issuance: Not given.

Date Of Maturity: December 20, 2003.

Interest Rate/Payable: 8.375%

Date Of Purchase: On or about December 20, 1993.

Acceleration: Notice sent January 22, 2004.

Contract Documents: 1993 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from HSBC listing bonds inProffered: the above amount with the above given CUSIP No. (Account Statements; as held in an account belonging to Ezequiel Letters; Notarized Hernan Baclini and Patricia Ruth Caronna Statements, etc.)

Table 2.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Ana Valeria Baravalle and Pablo Alejandro : Baravalle U.S. $61,000 CUSIP No. 040114ANO; ISIN No. US040114AN02 Not given. October 9, 2006. 11% On or about January 3 and January 4, 2001 Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for Ana (Account Statements; Valeria Baravalle and Pablo Alejandro Baravalle. Letters; Notarized Statements, etc.)

Table 3.

Plaintiff Bond Holder or Enrique Cohen, Estella Bety Rosas de Cohen, andBeneficial Owner: Debora Reina Cohen

Face Value: U.S. $75,000

CUSIP No., ISIN No., BB CUSIP No. 040114AZ3; ISIN No. US040114AZ32No.:

Date Of Issuance: Not given.

Date Of Maturity: December 4, 2005.

Interest Rate/Payable: 11 %

Date Of Purchase: On or about August 12, 2001.

Acceleration: Notice sent October 3, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Citibank listing bondsProffered: in the above amount in a brokerage account (Account Statements; belonging to Enrique Cohen, Estrella Bety Rosas Letters; Notarized De Cohen, and Debora Reina Cohen. Statements, etc.)

Table 4.

Plaintiff Bond Holder or Guillermo Jorge DomatoBeneficial Owner:

Face Value: U.S. $165,000

CUSIP No., ISIN No., BB CUSIP No. 040114AR1; ISIN No. US040114AR16No.:

Date Of Issuance: January 30, 1997.

Date Of Maturity: January 30, 2017.

Interest Rate/Payable: 11.375%

Date Of Purchase: On or about June 21 and August 9, 2000.

Acceleration: Notice sent October 8, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from B.P. Alpha listingProffered: bonds in the above amount with the above date of (Account Statements; issuance, date of maturity, and interest rate in a Letters; Notarized brokerage account belonging to Guillermo Jorge Statements, etc.) Donato.

Table 5.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Maria Del Carmen Escudero : U.S. $34,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 30, 2017. 11.375% On or about August 2, 2001. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for Maria (Account Statements; Del Carmen Escudero. Letters; Notarized Statements, etc.)

Table 6.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Susana Frasca : U.S. $110,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 30, 2017. 11.375% On or about August 4, 2000. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for Susana (Account Statements; Frasca. Letters; Notarized Statements, etc.)

Table 7.

Plaintiff Bond Holder or Imperial Bylidol S.A.Beneficial Owner:

Face Value: U.S. $500,000

CUSIP No., ISIN No., BB CUSIP No. 040114GG9; ISIN No. US040114GG96No.:

Date Of Issuance: Not given.

Date Of Maturity: June 19, 2018.

Interest Rate/Payable: 12.25%

Date Of Purchase: On or about April 2, April 4, May 12, and May 19, 2003.

Acceleration: Notice sent October 8, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Merrill Lynch listingProffered: bonds in the above amount in an account (Account Statements; belonging to Imperial Bylidol S.A. Letters; Notarized Statements, etc.)

Table 8.

Plaintiff Bond Holder or Luigi Giacomazzi and Luciana PedrolliBeneficial Owner:

Face Value: U.S. $1,600,000

CUSIP No., ISIN No., BB CUSIP No. 040114FC9; ISIN No. US040114FC91No.:

Date Of Issuance: Not given.

Date Of Maturity: Not given.

Interest Rate/Payable: 11.375%

Date Of Purchase: On or about July 13 and July 17, 2001.

Acceleration: Notice sent October 8, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Banca del Garda listingProffered: bonds in the above amount with the above given (Account Statements; ISIN No. as held on account for Luigi Giacomazzi Letters; Notarized and Luciana Pedrolli. Statements, etc.)

Table 9.

Plaintiff Bond Holder or Patrizia Giacomazzi and Michele StagnittoBeneficial Owner:

Face Value: U.S. $128,000

CUSIP No., ISIN No., BB CUSIP No. 040114FC9; ISIN No. US040114FC91No.:

Date Of Issuance: Not given.

Date Of Maturity: Not given.

Interest Rate/Payable: 11.375%

Date Of Purchase: On or about July 24 and August 2, 2001.

Acceleration: Notice sent October 8, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Banca del Garda listingProffered: bonds in the above amount with the above given (Account Statements; ISIN No. as held on account for Patrizia Letters; Notarized Giacomazzi and Michele Stagnitto. Statements, etc.)

Table 10.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Norberto Pablo Giudice : U.S. $27,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 20, 2017. 11.375% On or about June 29, August 6, and August 8, 2001. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for (Account Statements; Norberto Pablo Giudice. Letters; Notarized Statements, etc.)

Table 11.

Plaintiff Bond Holder or Alberto HaberBeneficial Owner:

Face Value: U.S. $302,400

CUSIP No., ISIN No., BB CUSIP No. P04981CF4; ISIN No. XS0043120236No.:

Date Of Issuance: March 31, 1993.

Date Of Maturity: March 29, 2005.

Interest Rate/Payable: Not given.

Date Of Purchase: In or around September 2002.

Acceleration: None.

Contract Documents: FRB dated December 6, 1992. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Asset statement from UBS listing bonds in theProffered: above amount with the above given ISIN No. as (Account Statements; held in an account belonging to Alberto Haber. Letters; Notarized Statements, etc.)

Table 12.

Plaintiff Bond Holder or Jose Alberto LandiBeneficial Owner:

Face Value: U.S. $115,000

CUSIP No., ISIN No., BB CUSIP No. 040114AR1; ISIN No. US040114AR16No.:

Date Of Issuance: Not given.

Date Of Maturity: January 30, 2017.

Interest Rate/Payable: 11.375%

Date Of Purchase: In or around 2000.

Acceleration: Notice sent October 3, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Caja de Valores listingProffered: bonds in the above amount with the above given (Account Statements; ISIN No. as held in an account for Jose Alberto Letters; Notarized Landi. Statements, etc.)

Table 13.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Susana Lauria and Guillermo Dotto : U.S. $41,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 30, 2017. 11.375% On or about July 17 and August 2, 2001. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for (Account Statements; Guillermo Dotto and Susana Lauria. Letters; Notarized Statements, etc.)

Table 14.

Plaintiff Bond Holder or Corbins Trade S.A.Beneficial Owner:

Face Value: U.S. $1,130,000

CUSIP No., ISIN No., BB CUSIP No. 040114AR1; ISIN No. US040114AR16No.:

Date Of Issuance: Not given.

Date Of Maturity: January 30, 2017.

Interest Rate/Payable: 11.375%

Date Of Purchase: In or around August 2003.

Acceleration: Notice sent October 3, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Credit LyonnaisProffered: (Suisse) S.A. (Account Statements; Letters; Notarized Statements, etc.)

Table 15.

Plaintiff Bond Holder or Corbins Trade S.A.Beneficial Owner:

Face Value: U.S. $480,000

CUSIP No., ISIN No., BB CUSIP No. 040114AV2; ISIN No. US040114AV28No.:

Date Of Issuance: Not given.

Date Of Maturity: September 19, 2027.

Interest Rate/Payable: 9.75%

Date Of Purchase: In or around August 2003.

Acceleration: Notice sent October 3, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Credit LyonnaisProffered: (Suisse) S.A. (Account Statements; Letters; Notarized Statements, etc.)

Table 16.

Plaintiff Bond Holder or Hugo Masini and Viviana Noemi TouronBeneficial Owner:

Face Value: U.S. $105,000

CUSIP No., ISIN No., BB CUSIP No. 040114AZ3; ISIN No. US040114AZ32No.:

Date Of Issuance: Not given.

Date Of Maturity: December 4, 2005.

Interest Rate/Payable: 11 %

Date Of Purchase: In or around March 2001.

Acceleration: Notice sent October 8, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Citibank listing bondsProffered: in the above amount in an account belonging to (Account Statements; Hugo Masini and Viviana N Touron. Letters; Notarized Statements, etc.)

Table 17.

Plaintiff Bond Holder or Paula MastronardiBeneficial Owner:

Face Value: U.S. $100,000

CUSIP No., ISIN No., BB CUSIP No. 040114ANO; ISIN No. US040114AN02No.:

Date Of Issuance: Not given.

Date Of Maturity: October 9, 2006.

Interest Rate/Payable: 11%

Date Of Purchase: Not given.

Acceleration: Notice sent October 14, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from B.P. Alpha listingProffered: bonds in the above amount with the above given (Account Statements; CUSIP No. in a portfolio belonging to Paula Letters; Notarized Mastronardi. Statements, etc.)

Table 18.

Plaintiff Bond Holder or Paula MastronardiBeneficial Owner:

Face Value: U.S. $454,000

CUSIP No., ISIN No., BB CUSIP No. 040114AR1; ISIN No. US040114AR16No.:

Date Of Issuance: Not given.

Date Of Maturity: January 30, 2017.

Interest Rate/Payable: 11.375%

Date Of Purchase: Not given.

Acceleration: Notice sent October 14, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from B.P. Alpha listingProffered: bonds in the above amount with the above given (Account Statements; CUSIP No. in a portfolio belonging to Paula Letters; Notarized Mastronardi. Statements, etc.)

Table 19.

Plaintiff Bond Holder or Claudio Miguel MatheouBeneficial Owner:

Face Value: U.S. $80,000

CUSIP No., ISIN No., BB CUSIP No. 040114GF1; ISIN No. US040114GF14No.:

Date Of Issuance: Not given.

Date Of Maturity: December 19, 2008.

Interest Rate/Payable: Not given.

Date Of Purchase: In or around July 2001.

Acceleration: Notice sent October 8, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Merrill Lynch listingProffered: bonds in the above amount in an account (Account Statements; belonging to Claudio Miguel Matheou. Letters; Notarized Statements, etc.)

Table 20.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Jorge Marcelo Mazzini and Graciela Alejandra : Chersicla U.S. $239,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 30, 2017. 11.375% On or about August 10 and August 31, 2000. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for Jorge (Account Statements; Marcelo Mazzini and Graciela Alejandra Letters; Notarized Chersicla. Statements, etc.)

Table 21.

Plaintiff Bond Holder or Dario Alberto PardalBeneficial Owner:

Face Value: U.S. $150,000

CUSIP No., ISIN No., BB CUSIP No. 040114AH3; ISIN No. US040114AH34No.:

Date Of Issuance: Not given.

Date Of Maturity: December 20, 2003.

Interest Rate/Payable: 8.375%

Date Of Purchase: On or about August 3, 2000.

Acceleration: Notice sent January 22, 2004.

Contract Documents: 1993 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Merrill Lynch listingProffered: bonds in the above amount in an account (Account Statements; belonging to Dario Alberto Pardal. Letters; Notarized Statements, etc.)

Table 22.

Plaintiff Bond Holder or Dario Alberto PardalBeneficial Owner:

Face Value: U.S. $250,000

CUSIP No., ISIN No., BB CUSIP No. 040114AZ3; ISIN No. US040114AZ32No.:

Date Of Issuance: Not given.

Date Of Maturity: December 4, 2005.

Interest Rate/Payable: 11%

Date Of Purchase: On or about August 3, 2000.

Acceleration: Notice sent October 14, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Merrill Lynch listingProffered: bonds in the above amount in an account (Account Statements; belonging to Dario Alberto Pardal. Letters; Notarized Statements, etc.)

Table 23.

Plaintiff Bond Holder or Dario Alberto PardalBeneficial Owner:

Face Value: U.S. $100,000

CUSIP No., ISIN No., BB CUSIP No. 040114ANO; ISIN No. US040114AN02No.:

Date Of Issuance: Not given.

Date Of Maturity: October 9, 2006.

Interest Rate/Payable: 11 %

Date Of Purchase: On or about April 12, 1999.

Acceleration: Notice sent October 14, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Merrill Lynch listingProffered: bonds in the above amount in an account (Account Statements; belonging to Dario Alberto Pardal. Letters; Notarized Statements, etc.)

Table 24.

Plaintiff Bond Holder or Kinburg Trust S.A.Beneficial Owner:

Face Value: U.S. $789,000

CUSIP No., ISIN No., BB CUSIP No. 040114AH3; ISIN No. US040114AH34No.:

Date Of Issuance: Not given.

Date Of Maturity: December 20, 2003.

Interest Rate/Payable: 8.375%.

Date Of Purchase: Not given.

Acceleration: Notice sent January 22, 2004.

Contract Documents: 1993 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Bank Boston listingProffered: bonds in the above amount as held in an account (Account Statements; belonging to Kinburg Trust S.A. Letters; Notarized Statements, etc.)

Table 25.

Plaintiff Bond Holder or Valerio PiacenzaBeneficial Owner:

Face Value: U.S. $65,000

CUSIP No., ISIN No., BB CUSIP No. 040114AZ3; ISIN No. US040114AZ32No.:

Date Of Issuance: Not given.

Date Of Maturity: Not given.

Interest Rate/Payable: 11%

Date Of Purchase: On or about June 13, 2001.

Acceleration: Notice sent October 3, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from San Paolo IMI S.p.A.Proffered: listing bonds in the above amount with the above (Account Statements; given ISIN No. as held in an account belonging to Letters; Notarized Valerio Piacenza. Statements, etc.)

Table 26.

Plaintiff Bond Holder or Compania Calitecno S.A.Beneficial Owner:

Face Value: U.S. $105,000

CUSIP No., ISIN No., BB CUSIP No. 040114AZ3; ISIN No. US040114AZ32No.:

Date Of Issuance: December 4, 1998.

Date Of Maturity: December 4, 2005.

Interest Rate/Payable: 11 %

Date Of Purchase: On or about July 28, 2003.

Acceleration: Notice sent October 3, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Position statement from Clariden Bank listingProffered: bonds in the above amount with the above dates (Account Statements; of issuance and maturity and interest rate as held Letters; Notarized in an account belonging to Compania Calitecno Statements, etc.) S.A.

Table 27.

Plaintiff Bond Holder or Juan Jose Rizzo, Claudia Aurora Sabatini Bartra,Beneficial Owner: and Lidia Julia Mancini

Face Value: U.S. $45,000

CUSIP No., ISIN No., BB CUSIP No. 040114AH3; ISIN No. US040114AH34No.:

Date Of Issuance: Not given.

Date Of Maturity: December 20, 2003.

Interest Rate/Payable: 8.375%

Date Of Purchase: On or about August 16, 2001.

Acceleration: Notice sent January 22, 2004.

Contract Documents: 1993 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Citibank listing bondsProffered: in the above amount in an account belonging to (Account Statements; Juan Jose Rizzo, Claudia Sabatini Bartra, and Letters; Notarized Lidia Julia Mancini Statements, etc.)

Table 28.

Plaintiff Bond Holder or Salvador Saddemi, Maria Teresa Lepone, andBeneficial Owner: Sergio Saddemi

Face Value: U.S. $90,000

CUSIP No., ISIN No., BB CUSIP No. 040114AH3; ISIN No. US040114AH34No.:

Date Of Issuance: Not given.

Date Of Maturity: December 20, 2003

Interest Rate/Payable: 8.375%

Date Of Purchase: On or about June 28, 1996.

Acceleration: Notice sent January 22, 2004.

Contract Documents: 1993 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from Citibank listing bondsProffered: in the above amount in an account belonging to (Account Statements; Salvador Saddemi, Maria T. Lepone, and Sergio Letters; Notarized Saddemi. Statements, etc.)

Table 29.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Hernan Taboada : U.S. $58,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 30, 2017. 11.375% On or about August 8, 2001. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for Hernan (Account Statements; Taboada. Letters; Notarized Statements, etc.)

Table 30.

Plaintiff Bond Holder or Beneficial Owner Face Value: CUSIP No., ISIN No., BB No.: Date Of Issuance: Date Of Maturity: Interest Rate/Payable: Date Of Purchase: Acceleration: Contract Documents: Evidence of Ownership Proffered: Jorge Manuel Taboada : U.S. $33,000 CUSIP No. 040114AR1; ISIN No. US040114AR16 Not given. January 30, 2017. 11.375% On or about August 8, 2001. Notice sent October 3, 2003. 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.) — Certificate from Caja De Valores listing bonds in the above amount as held on account for Jorge (Account Statements; Manuel Taboada. Letters; Notarized Statements, etc.)

Table 31.

Plaintiff Bond Holder or Horacio Alberto Vazquez and Liliana CebrowskiBeneficial Owner:

Face Value: U.S. $40,000

CUSIP No., ISIN No., BB CUSIP No. 040114AR1; ISIN No. US040114AR16No.:

Date Of Issuance: Not given.

Date Of Maturity: Not given.

Interest Rate/Payable: Not given.

Date Of Purchase: On or about October 27, 2000.

Acceleration: Notice sent October 14, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from MBA Banco deProffered: Inversiones S.A. listing bonds in the above (Account Statements; amount as held in an account belonging to Letters; Notarized Horacio Vazquez and Liliana Cebrowski. Statements, etc.)

Table 32.

Plaintiff Bond Holder or Horacio Alberto Vazquez and Liliana CebrowskiBeneficial Owner:

Face Value: U.S. $33,000

CUSIP No., ISIN No., BB CUSIP No. 040114GA2; ISIN No. US040114GA27No.:

Date Of Issuance: Not given.

Date Of Maturity: Not given.

Interest Rate/Payable: Not given.

Date Of Purchase: On or about October 31, 2000 and February 26, 2001.

Acceleration: Notice sent October 14, 2003.

Contract Documents: 1994 FAA. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Account statement from MBA Banco deProffered: Inversiones S.A. listing bonds in the above (Account Statements; amount as held in an account belonging to Letters; Notarized Horacio Vazquez and Liliana Cebrowski. Statements, etc.)

Table 33.

Plaintiff Bond Holder or Heinrich Peter Zum FeldeBeneficial Owner:

Face Value: U.S. $500,000

CUSIP No., ISIN No., BB BB No. FRN 00000366; ISIN No. XS004312082-2No.:

Date Of Issuance: Not given.

Date Of Maturity: Not given.

Interest Rate/Payable: Not given.

Date Of Purchase: Between April 2001 and May 2001.

Acceleration: Not sent.

Contract Documents: FRB dated December 6, 1992. (FAA; Indenture; Offering Prospectus; Certificates, etc.)

Evidence of Ownership — Photocopy of the above described bondProffered: registered in the name of Heinrich Peter Zum (Account Statements; Feld. Letters; Notarized Statements, etc.)

DISCUSSION

Standing

Defendant's argument that plaintiffs lack standing based on the language in the agreements governing the bonds is essentially the same as what was rejected in Latinburg, S.A. v. The Republic of Argentina, 03 Civ. 8528 (TPG), 2004 WL 1152243 (S.D.N.Y. May 24, 2004).

Acceleration of Principal

The Court has already granted summary judgment to the plaintiff bondholders seeking to collect on the Republic's bonds issued under the 1994 FAA in the Lightwater, supra, case. The Court wrote in Lightwater;

The obligations of the Republic on the bonds involved in these lawsuits are unconditional. Sovereign immunity has been waived. The Republic defaulted on the bonds when it ceased to pay the interest. This would seem to mean that the Republic now owes the three plaintiffs principal and accrued interest.

2003 WL 1878420, at *4.

The Court finds nothing in the record to distinguish the instant case as to this Court's jurisdiction and plaintiffs' unconditional legal right to collect the unpaid interest and to accelerate payment of principal on the bonds issued under the 1994 FAA.

The Court has not yet ruled on the 1993 FAA. However, as described above, the terms of the 1993 FAA are very similar to the terms of the 1994 FAA. The Court therefore will apply its reasoning in Lightwater. The Court now holds that it has jurisdiction over claims regarding bonds issued under the 1993 FAA, and that plaintiffs who have given proper notice have the unconditional legal right to collect the unpaid interest and to accelerate payment of principal on the bonds issued under that agreement.

The FRB has not yet been adjudicated. While the Republic's declared moratorium is clearly an event of default under Section 9 of Exhibit 1A to the FRB, plaintiffs have not shown a right to accelerate payment of principal. Plaintiffs do not contend that they are holders of at least 25% of the aggregate outstanding principal amount of the bonds, nor do they contend that repayment of the principal amount of bonds issued under the FRB has been otherwise accelerated. Therefore, the plaintiffs holding bonds issued under the FRB may claim only unpaid interest on their present motion.

Proof of Ownership

Plaintiffs provide a number of declarations and exhibits to prove their ownership of the bonds. However, the persuasiveness of these materials varies.

Each individual plaintiff, or a representative, provides a declaration asserting ownership of a specific bond or bonds. Declarations which meet the requirements of 28 U.S.C. § 1746 may be substituted for an affidavit on a motion for summary judgment. Local Civil Rule 1.10. 28 U.S.C. § 1746 requires that "substantially the following form" be used when making a declaration outside the United States under penalty of perjury:

"I declare (or certify, verify, or state) under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on (date). (Signature)".

28 U.S.C. § 1746 (2002). Many of the declarations made by the individual plaintiffs state that "to the best of my knowledge the foregoing is true and correct." This language is not substantially different from the statutory example. The Court considers these declarations to be sufficient.

Each individual plaintiff, or a representative, also provides documents that show the plaintiff's ownership of a bond or bonds. These documents typically take the form of account statements or letters from the plaintiff's bank or broker, usually accompanied by a translated copy. This Court has already decided, in a March 2004 conference covering acceptable proof of ownership in theApplestein case, 02 Civ. 4124 (TPG), that account statements would generally be accepted as reasonable evidence of plaintiffs' account holdings. This Court will therefore generally rely on account statements provided by each plaintiff in deciding this motion.

This Court will grant summary judgment to plaintiffs who provide (1) evidence of ownership of a particular bond, and (2) evidence specifically identifying that bond. In most cases, a properly executed declaration and an account statement will be sufficient to prove that the bonds plaintiffs claim to own are in fact the bonds held in their accounts. Needless to say, the Court will also accept other evidence, so long as it specifically confirms that the bonds held in plaintiffs' accounts are the bonds they claim to own.

Applying the above standards, the Court finds that no issues of material fact remain.

The Republic's Discovery Requests and the Defense of Champerty

The Republic has requested discovery with respect to plaintiffs' proof of ownership. As discussed above, plaintiffs generally have produced sufficient evidence establishing their ownership of the bonds at issue. Further discovery on this issue is not necessary. The Republic also seeks discovery of information relating to the defense of champerty. Section 489 of the New York Judiciary Law prohibits the purchase of bonds for the sole purpose of bringing suit. See Elliott Assoc. v. Banco de la Nacion, 194 F.3d 363 (2d Cir. 1999). This Court has already considered the issue of discovery in regard to that defense. See, e.g., Lightwater, 2003 WL 1878420, at *4;Applestein, 2003 WL 1990206, at *4. The Court believes, as it did in those cases, that discovery would not establish any set of facts which would establish a successful champerty defense. The evidence is clear that plaintiffs bought their bonds with the intention of collecting on them, even though they clearly were aware that a lawsuit might be necessary. There was therefore no champerty in violation of Section 489 of the New York Judiciary Law.

CONCLUSION

Plaintiffs' motion for summary judgment is granted in part and denied in part. Plaintiffs' motion for summary judgment is granted as to plaintiffs Ezequiel Hernan Baclini and Patricia Ruth Caronna; Ana Valeria Baravalle and Pablo Alejandro Baravalle; Enrique Cohen, Estella Bety Rosas de Cohen, and Debora Reina Cohen; Guillermo Jorge Domato; Maria Del Carmen Escudero; Susana Frasca; Imperial Bylidol S.A.; Luigi Giacomazzi and Luciana Pedrolli; Patrizia Giacomazzi and Michele Stagnitto; Norberto Pablo Giudice; Jose Alberto Landi; Susana Lauria and Guillermo Dotto; Corbins Trade, S.A.; Hugo Masini and Viviana Noemi Touron; Paula Mastronardi; Claude Miguel Matheou; Jorge Marcelo Mazzini and Graciela Alejandra Chersicla; Dario Alberto Pardal; Kinburg Trust S.A.; Valerio Piacenza; Compania Calitecno, S.A.; Juan Jose Rizzo, Claudia Aurora Sabatini Bartra, and Lidia Julia Mancini; Salvador Saddemi, Maria Teresa Lepone, and Sergio Saddemi; Hernan Taboada; Jorge Manuel Taboada; and, Horacio Alberto Vazquez and Liliana Cebrowski.

Plaintiffs' motion for summary judgment is granted only for payment of past due interest as to plaintiffs Alberto Haber and Heinrich Peter Zum Felde. Plaintiffs' motion for summary judgment as to accelerated principal on the bonds owed by Haber and Zum Felde is denied.

Plaintiffs motion to strike defendant's discovery requests is granted.

Plaintiffs shall submit an appropriate judgment.

SO ORDERED.