NEW YORK, Feb 29 (IFR) - Argentina and its main holdout creditors have signed an agreement in principle to settle a 15-year old dispute over defaulted bonds, the lead mediator said on Monday.
“It gives me greatest pleasure to announce that the 15-year pitched battle between the Republic of Argentina and Elliott Management, led by Paul E. Singer, is now well on its way to being resolved,” court-appointed mediator Daniel Pollack said in a statement.
According to the agreement, Argentina would pay Elliott Management and other funds who sued Argentina alongside it a total of around US$4.653bn to settle all claims worldwide.
As with previous agreements reached between Argentina and holdout creditors who refused to participate in its 2005 and 2010 debt restructurings, the deal requires the South American country to repeal two laws that bar those settlements.
The agreement would pay funds managed by Elliott Management, Aurelius Capital, Davidson Kempner and Bracebridge Capital, 75% of their full judgments including principal and interest plus certain legal fees.
Reporting by Davide Scigliuzzo; Editing by Paul Kilby