The deal, agreed late on Sunday and announced by the New York court-appointed mediator Daniel Pollack on Monday, will see the four largest remaining holdout creditors get paid 75 percent of the amount outstanding on their judgments, including principal and interest.
Pollack held a press conference in New York where he outlined some of the details of the unpublished 10 paragraph agreement that sets the terms for settling the dispute that stems from a $100 billion sovereign default in early 2002.
Here are details of the deal revealed by Pollack as well as historical background of the case:
* The agreement in principle was signed between Argentina and Elliott Management, Aurelius Capital Management, Davidson Kempner and Bracebridge Capital.
* The claims by these holdout investors were brought before U.S. District Judge Thomas Griesa in the Southern District of New York. They amounted to $5.891 billion.
* Under the terms of the settlement agreement, the holdouts were paid 75 percent of their claims, approximately $4.4 billion, amounting to what is referred to as a 25 percent haircut
* An additional payment of $235 million is to be paid to the holdouts to settle all of their claims outside of the Southern District as well as legal fees and expenses over a 15 year period.
* If the payment is not made by noon eastern standard time on April 14, 2016, then the agreement could become null and void if the two sides do not agree an extension.
* This haircut is less than the 27.5 to 30 percent haircut offered by Macri's government when it announced its terms for a resolution on Feb. 5. The government offered a pot of money, $6.5 billion, to settle the claims.
* Two large holdout investors, Dart Management and Montreux Equity Partners accepted the proposal when initial terms were released on Feb. 5.
* Argentina plans to raise capital in the international markets, approximately $15 billion, in order to pay for the settlement. The holdouts pledge not to attempt to interfere with that capital raise.
* Technical details for executing the payment have yet to be finalized, Pollack said.
* The agreement with these holdouts, led by Elliott and Aurelius, stems from a $1.33 billion judgment in 2012 by Griesa in their favor. Interest accrued from that time forward. At the time of Griesa's ruling in 2012, a source familiar with NML's position said the firm accounted for between 45 and 50 percent of that court award. Aurelius's position is smaller, a second source told Reuters at the time.
(Additional reporting by Tariro Mzezewa in New York; Editing by Andrew Hay)
By Daniel Bases
