Tuesday, June 28, 2016

Argentina Settles With Another Creditor


Argentina reaches $95m debt deal with Greylock

The number of Argentina’s holdout creditors continues to dwindle.
The Republic of Argentina signed an agreement with Greylock Capital Management on Wednesday evening for $95m to settle the New York-based investment group’s dispute, US capital markets correspondent Eric Platt reports.
The settlement covers bonds with an original nominal value of $68m, according to a statement from the mediator presiding over negations. Greylock Capital will be paid 150 per cent of the original face value of floating rate adjustable notes it held but not receive any payments on bonds that are time-barred based on certain limitations.
Greylock Capital will surrender those bonds under an agreement that covers debts in New York, German, Italian and Swiss jurisdiction.
“This settlement leaves relatively few claims unresolved, and is a strong demonstration by the Republic of its continued willingness to resolve claims of holders of defaulted bonds,” said Daniel Pollack, the mediator.
Argentina struck agreements with the majority of its holdout creditors leading up to its landmark $16.5bn bond sale in April, which was issued to fund payments to holdout bondholders and heralded the return of the Latin American sovereign to debt capital markets after a 15 year lock-out.
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