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Argentina Reaches Preliminary Deal With Final 2001 Holdouts, Seeks Litigation Pause

The parties asked Judge Loretta Preska to halt proceedings to enable a settlement, pausing Bainbridge’s bid for state stakes in Banco Nación and Aerolíneas Argentinas.

Overview

  • Argentina and hedge funds Attestor Master Value and Bainbridge Fund notified the SDNY on March 11 that they reached an agreement in principle to resolve their long-running default-era claims.
  • The joint filing requests a suspension of the case while terms are finalized, including a pause of Bainbridge’s October 17, 2025 motion seeking turnover of state shareholdings in Banco Nación and Aerolíneas Argentinas.
  • Specialist reports indicate the understanding contemplates an internal division of Brady-bond collateral held at the Federal Reserve, though specific terms were not disclosed in the court notice.
  • The creditors hold final U.S. judgments totaling more than $500 million, with roughly $460 million tied to Attestor and about $95 million plus interest to Bainbridge.
  • The letter does not address a separate Bainbridge move involving YPF shares, and the parties said they will update the court on the status of talks and any need to resume proceedings.