Argentina Reaches $5-Billion Deal With Two More Holdout Creditors

Argentina Reaches $5-Billion Deal With Two More Holdout Creditors © Photo: pixabay

03:31 25.02.2016(updated 03:53 25.02.2016) Get short URL
http://sputniknews.com/latam/20160225/1035307130/argentina-reaches-holdout-creditors-deal.html

A lawyer representing the creditors said Argentina has reached an agreement with two holdout creditors, Aurelius Capital Management and NML Capital, on paying $5 billion to resolve a long-standing debt dispute.

MEXICO CITY (Sputnik) – Argentina has reached an agreement with two holdout creditors, Aurelius Capital Management and NML Capital, on paying $5 billion to resolve a long-standing debt dispute, a lawyer representing the creditors said.

“We have had an agreement on economic terms with Argentina since Thursday,” Matthew McGill said in a hearing before a US Federal Appeals court in Manhattan on Wednesday, as quoted by Buenos Aires Herald.

The lawyer called the agreement a “$5 billion transaction” but specified that the parties still need more time to finish the deal, according to the newspaper.

Earlier this month, Argentina agreed to pay $110 million in settlement to Capital Markets Financial Services and $1.1 billion to EM Ltd. and Montreux Partners LP.

The agreements are being reached within the framework of the proposal Argentina made on February 5 to pay $6.5 billion to US holdout creditors that would not accept debt restructuring.

Most of Argentina’s creditors agreed to debt restructuring conducted in 2005 and 2010. Some, including Aurelius Capital Management and NML Capital, refused to accept the deal, prompting US District Judge Thomas Griesa to freeze Argentina’s ability to transfer funds to restructured bondholders until it pays the holdouts in the restructuring.

The ruling forced Argentina into its second default in 13 years.

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