October 5, 2016 / 8:42 PM / in 2 years

Argentina agrees to $40.5 mln more in default settlement -mediator

NEW YORK, Oct 5 (Reuters) - Argentina settled with an additional creditor holding defaulted sovereign bonds for $40.52 million, Daniel Pollack, the court-appointed mediator said in a statement on Wednesday.

Pollack has overseen the historic settlement between Argentina and holdout investors who agreed to terms after a 14-year legal battle over defaulted sovereign bonds that ended earlier this year.

The latest agreement was reached with one of the last remaining large “holdout” bondholders, Banca Arner SA of Switzerland, Pollack said.

“Argentina will pay Banca Arner, for its clients, $40,520,000, and Banca Arner will surrender all of its defaulted Argentine bonds and dismiss its lawsuit against Argentina,” the statement said.

An agreement with four major holdout investors in February of this year marked the major turning point in the legal saga and allowed Argentina, under newly elected President Mauricio Macri, to move forward with an economic revitalization plan.

Argentina returned to the international capital markets with a $16.5 billion debt issuance that it used primarily to pay off the U.S.-based holdout investors led by Elliott Management.

Argentina defaulted on approximately $100 billion in debt and interest in early 2002.

Pollack was named Special Master in the case by U.S. District Judge Thomas Griesa in 2014 in order to facilitate a negotiated settlement. (Reporting By Daniel Bases; Editing by Andrew Hay)

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