UPDATE 2-Argentina, major creditors near $5 billion debt deal -lawyer
(Updates with further details from court hearing, background on the litigation)
By Nate Raymond
NEW YORK Feb 24 (Reuters) - Major creditors suing Argentina over defaulted bonds have agreed to the economic terms of an agreement to resolve the long-running litigation but need more time to complete the $5 billion deal, a lawyer for the investors said Wednesday.
The disclosure came during a hearing before a federal appeals court in New York, where the panel said it will allow a U.S. judge to move forward with lifting injunctions that restrict Argentina from paying off some debts.
Matthew McGill, a lawyer representing creditors Elliott Management's NML Capital and Aurelius Capital Management, said his clients "have had an agreement on economic terms with Argentina since Thursday."
McGill called it a "$5 billion transaction." But McGill said his clients needed more time beyond a Monday deadline imposed by Argentina for bondholders to agree to participate in the country's offer to pay $6.5 billion to resolve various lawsuits.
"If we have just a little time we can finish the deal," he said.
To get that extra time, McGill urged the 2nd U.S. Circuit Court of Appeals to not dismiss various appeals by Argentina that, while pending, prevented U.S. District Judge Thomas Griesa from lifting the injunctions.
Griesa signalled on Friday he would lift the injunctions but said he lacked jurisdiction to do so while the appeals were pending. Continuación...