UPDATE 1-Argentina, creditors agree on $255 mln default settlement -mediator
(Adds detail, background, byline; adjusts slug to ARGENTINA-DEBT/SETTLEMENT)
By Daniel Bases
NEW YORK, April 12 (Reuters) - Argentina settled with an additional creditor holding defaulted sovereign bonds for approximately $255 million, Daniel Pollack, the court-appointed mediator in the long-running case, said in a statement on Tuesday.
The agreement in principle was reached between the government and Yellow Crane Holdings involving the settlement of bonds under a range of laws in jurisdictions including New York, England, Germany, Italy and Switzerland, Pollack said.
Financial terms of the settlement were not given by Pollack.
However, the statement noted that, according to Argentine officials, Yellow Crane will not be paid for bonds they hold that are beyond a statute of limitations for litigation. Instead, those bonds will be forfeited without payment at the same time as Yellow Crane hands over and gets paid its settlement on other defaulted bonds.
The forfeiture of the bonds without payment indicates a shift by Yellow Crane. The firm was part of a plaintiffs' group that filed a lawsuit before U.S. District Judge Thomas Griesa on March 25 that involved the bonds it is now giving up for nothing. Attempts to reach their lawyer were unsuccessful.
The suit claims Argentina reneged on settlement agreements that included the bonds with statute of limitation issue via the government's settlement process.
The lawsuit, led by Tim DeSieno of Morgan, Lewis & Bockius, alleges Argentina acknowledged the bonds pledged by his clients to settlement agreements that were beyond the statute of limitations by a Feb. 29 deadline set by the government. Continuación...