Argentina’s $25 Million Settlement of its defaulted samuray Bonds

Cleary Gottlieb Steen & Hamilton and Kojima Law Offices advised the Republic of Argentina on the matter

The Government of Argentina, in a bid to settle a long dispute with holdout creditors, agrees to pay 150% of the outstanding principal ammount from four series of notes of samurai bonds that have been in default.

The settlement revolves yen-denominated debt floated by non-Japanese borrowers, that Argentina issued between 1996 and 2000. After the financial crisis that forced Argentina to default on a portion of the bonds in 2001, Argentina carried out bond exchange programs that heavily discounted the principal. About 98% of the creditors agreed to those terms but Japanese lenders Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank and Shinsei Bank, acting in their capacity as credit asset management firms, have stood their ground against the swap, taking legal action against Argentina.

Cleary Gottlieb Steen & Hamilton advised the Republic of Argentina on the matter with a team including Andrés de la Cruz (Picture), Carlos E. von der Heyde, Ezequiel Sánchez Herrera, Belén María Pironi and Juan Ignacio Grimau.

In Tokio, Kojima Law Offices advised the Republic of Argentina with Naoki Idei, Hironobu Akatsuka, Akiko Hibino and Darcy H. Kishida.

Involved fees earner: Andrés De la Cruz – Cleary Gottlieb Steen & Hamilton; Belen Maria Pironi – Cleary Gottlieb Steen & Hamilton; Ezequiel Sanchez Herrera – Cleary Gottlieb Steen & Hamilton; Carlos von der Heyde – Cleary Gottlieb Steen & Hamilton; Hironobu Akatsuka – Kojima Law Offices; Akiko Hibino – Kojima Law Offices; Naoki Idei – Kojima Law Offices;

Law Firms: Cleary Gottlieb Steen & Hamilton; Kojima Law Offices;

Clients: Republic of Argentina;

Author: Ambrogio Visconti.