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Argentina to pay $1.1 billion to 2 creditors in debt dispute

NEW YORK (Reuters) – Argentina has agreed to pay two creditors more than $1.1 billion to resolve claims over defaulted debt, as part of the country’s efforts to resolve the long-running dispute over its default of 2002, court documents filed Wednesday showed.

Settlement agreements filed in Manhattan federal court revealed billionaire investor Kenneth Dart’s EM Ltd would receive $849.2 million, after agreeing to participate in Argentina’s bid to resolve the dispute for $6.5 million. billions of dollars.

Montreux Partners LP, which along with EM Ltd was among the six major bondholders at the center of Argentina’s efforts to settle the legal battle, will receive nearly $298.7 million, according to court documents.

Their lawyers did not immediately respond to requests for comment.

The documents marked the first disclosure of how much each creditor would be paid. Daniel Pollack, a court-appointed mediator, previously said the two deals were worth “well over $1 billion” without disclosing how they were split.

Their deals were first announced on Feb. 5 as Argentina, led by President Mauricio Macri, offered to pay $6.5 billion to settle litigation stemming from its record $100 billion default in 2002. .

The offer represents a discount of 27.5% to 30% for creditors who have filed claims of around $9 billion. The settlements are subject to the approval of the Argentine Congress and the lifting of injunctions in the litigation.

Although the offer has been accepted by EM and Montreux, four other top creditors, including Elliott Management’s NML Capital Ltd and Aurelius Capital Management LP, have not accepted it to date.

These creditors rejected Argentina’s debt restructurings in 2005 and 2010, which resulted in the swapping of 92% of its defaulted debt and the payment of investors at less than 30 cents on the dollar.