Friday, March 18, 2016
Argentina reaches agreement with individual creditors in $155M settlement
US-court appointed mediator Daniel Pollack today announced Argentina has reached an agreement with 115 individual bondholders, holding $155 million of defaulted bonds in cases pending in the Southern District of New York before Judge Thomas Griesa.
In a statement released today, Pollack said he was very “pleased” to report the outcome of the settlement negotiations with this group of creditors.
“These settlements fall squarely within the terms of the Propuesta of February 5, published by the Republic of Argentina. The parties anticipate that most of these bondholders, all of whom have both money judgments and injunctions, will opt to receive 70% of their claims rather than 150% of the principal of their bonds, both of which are options available to them under the Propuesta of February 5,” the text reads but adds that “a few of the bondholders are considering selecting the option of 150% of principal.”
“As with all such settlements, these are subject to the lifting of the Lock Law and the Sovereign Payment Law by the Argentine Congress and the lifting of the Injunctions by Judge Griesa,” Pollack said regarding to the debate now taking place in the Senate committees of Budget and Economy with a final voting to be held on March 30. The Lower House cleared the holdouts bill first earlier this week.
“In that regard, meaningful progress has already been made. The lower chamber of the Argentine Congress this week approved a bill lifting those restrictive laws, and that bill now goes to the Argentine Senate for consideration.”