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Argentina Resolves $110m Bond Debt Claim

Argentina Resolves $110m Bond Debt ClaimArgentina Resolves $110m Bond Debt Claim

A court-appointed mediator in New York says Argentina has reached a settlement with bondholders seeking more than $110 million of the $10 billion being pursued by investors, AP reported. Mediator Daniel Pollack announced the deal late Thursday between Argentina and Capital Markets Financial Services. The deal was small compared with a $1.1 billion deal announced two weeks ago that resolved claims by two of the six largest bondholders. Pollack says the latest agreement fits in the framework of the $6.5 billion Argentina estimates it will cost to resolve all claims. The claims resulted from bondholders that went to court rather than trade their bonds years ago at steep discounts. Argentina has faced mounting bills since it defaulted in 2001 on $100 billion of debt. In the past when countries defaulted, there was not much that the holders of the debt could do. Sovereigns are immune from suit in other countries and their home courts.

 

Financialtribune.com