Holders of Argentine EUR-denominated GDP Warrants Apply for Recognition of the English Judgments in the United States

LONDON, June 23, 2025 /PRNewswire/ -- Earlier today, certain holders (the "Claimants") of Argentine EUR-denominated GDP warrants (ISIN: XS0209139244, the "Warrants") filed an action in the United States District Court for the District of Columbia (the "Recognition Application") seeking recognition of the judgments issued in respect of the Warrants by the English High Court and the Court of Appeal (the "English Judgments").¹ This action was taken on behalf of all holders of the Warrants.

On October 14, 2024 the English Judgments became final and unappealable after the Supreme Court of the United Kingdom refused Argentina's request for permission a lodge a further appeal. Despite having no further avenue for appeal, Argentina has made no proposal to the Claimants for payment of the sums owed under the English Judgments, nor has it engaged with any particularity in response to proposals made by the Claimants.

In April, Argentina reached agreement with the IMF on a 48-month US$20 billion Extended Fund Facility agreement. In order to qualify for the IMF facility, it appears that Argentina evidently made representations to the Fund that it was engaged in active, good-faith efforts to resolve the English Judgments to address the Fund's lending into arrears guidelines. No negotiations are ongoing, and to the extent Argentina represented that they were, that representation was incorrect. 

While the Claimants remain open to finding a consensual resolution with respect to the sums outstanding under the English Judgments and the disagreement with respect to the methodology for the calculation of the Payment Amounts for Reference years after 2013, they intend to vigorously enforce their rights in any and all appropriate forums. Argentina's IMF program sets an explicit target of return to international market access, which target the Claimants support. However, there should not be, nor can there be in practice, any market access until and unless Argentina resolves its default under the English Judgments.

By way of background, the Warrants were issued by Argentina to bondholders that voluntary compromised their claims following the country's 2001 default as a component of restructuring consideration. Argentina went on to avoid its payment obligations under the warrants in 2014 (which default was the subject of the English Judgments) and then defaulted on its restructured bonds (the other component of restructuring consideration) in 2020. Having faced a triple default by prior governments, Warrant holders presently are dealing with a fourth default, this time by the Milei administration.

Aidan O'Rourke, on behalf of the Claimants
Quinn Emanuel Urquhart & Sullivan UK LLP
90 High Holborn, London WC1V 6LJ
E-mail: [email protected]
Phone: +44 20 7653 2019

¹ Palladian Partners, L.P., et al. v. The Republic of Argentina (case number: 1:25-cv-01954).

SOURCE Quinn Emanuel Urquhart & Sullivan UK LLP