43c/RCom/Report2 Annex 3
Emergency motion 5: Condemnation of vulture funds’ actions to undermine Argentina’s economy
The 43rd Congress of the ITF, meeting in Sofia, Bulgaria from 10-‐16 August 2014:
1. Considering that the US Supreme Court’s 16 June 2014 decision has rejected Argentina’s appeal in its case against vulture funds that bought up devalued debt at rock-‐bottom prices from the original creditors and are pursuing repayment at full value through legal means, in such a way that even a tiny success rate can bring them considerable gains on their small initial “investments”;
2. Mindful of the fact that one of these vulture funds, NML Capital, a subsidiary of Elliott Management Corporation, is the largest shareholder (22%) of the passenger transport multinational National Express, whose US division, Durham School Services, is an anti-‐union firm;
3. Taking into account that NML Capital has purchased Argentine bonds at a value close to US$50 million in 2008, and the US courts decisions would allow it to cash more than US$800 million, securing a 1,600% yield in only six years.
4. Recalling that Elliott Management Corporation and its CEO and founder, Paul Singer, has already been condemned by the ITF for the seizure of the Argentine school-‐ship frigate ARA Libertad in Ghana in 2012;
5. Recalling also that earlier court rulings in favour of vulture funds had already elicited strong criticism from many governments, GUFs and even the IMF;
6. Noting with concern that by upholding the interests of a small minority of rogue speculators, the US courts have endangered the orderly repayment of Argentina’s debt to over 90 percent of its creditors, who voluntarily accepted a substantial write-‐off of their debt following the country’s sovereign default over a decade ago;
7. Recognising the importance of not allowing vulture funds to paralyse the debt-‐restructuring efforts of developing countries or to deny states the right to protect their people under international law;
8. Convinced of the need to prevent a serious threat not only to Argentina and its workers, but to all countries in the world and their capacity to stimulate their economies and create jobs;
9. Condemns the ruthless profit strategy of vulture funds that are aimed at undermining Argentina’s economy, with a primary direct effect on the country’s workforce;
10. Condemns the US Supreme Court’s 16 June 2014 decision rejecting Argentina’s appeal in the case against vulture funds;
11. Joins the international call on relevant regulatory bodies to reject the court’s decision and begin work to create a fair, independent and transparent arbitration mechanism for sovereign debt that would help the development of national economies, thus improving employment levels.
Submitted by: Asociación Argentina de Aeronavegantes (AAA) Asociación del Personal Aeronáutico (APA), Argentina Asociación de Pilotos de Líneas Aéreas (APLA), Argentina
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