Argentina agrees $253mn more in default settlement

epa04286153 Mediator Daniel Pollack leaves Federal Court in New York, New York, USA, 27 June 2014. He was attending a hearing regarding Argentina's petition to postpone deadlines to repay a 1.65 billion US dollar debt to US hedge funds.  Argentina on 26 June deposited 1 billion dollars in Buenos Aires banks to cover interest payment on restructured bonds due on 30 June. The move was an attempt to show the country is meeting its obligations to pay interest on restructured loans held by its current bond holders. A total of 832 million US dollars was deposited at the central bank of Argentina into the account of Bank of New York Mellon among others. However, this move conflicts with a court order that prohibits Argentina from making the payments without also servicing defaulted debt held by a group of hold-out hedge funds.  EPA/Andrew Gombert

NEW YORK / Reuters

Argentina settled with additional creditors holding defaulted sovereign bonds for $253 million, Daniel Pollack, the court-appointed mediator in the long-running case, said.
The agreements in principle reached late last week with several groups of creditors bring the aggregate amount of settled claims to approximately $8 billion, the statement said.
“In my capacity as Special Master, with the responsibility for presiding over the conduct of settlement negotiations, I am extremely gratified that holders of approximately 90 percent of bonds at issue in the cases in the Southern District of New York have now reached settlements with Argentina,” Pollack said.
The settlements reached on Thursday and Friday are with Fore Research and Management of New York City, for the Honero Fund; 35 pension fund clients of Stone Harbor Investment Partners; and 31 individual bondholders. All of the bondholders agreed to the terms set out by Argentina on Feb. 5 that will pay the bondholders 150 percent of their principal investment.
The most recent settlement moves Latin America’s No. 3 economy closer to ending a 14-year legal battle over its historic default, which blocked it from global credit markets. Argentina has reached settlements well above the original $6.5 billion pot of money committed by Buenos Aires to end the

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