A consortium of Argentine banks is set to offer to buy out the country's debt held by holdout investors suing Argentina, in an eleventh-hour deal aimed at averting a default, a senior banking executive familiar with the offer told Reuters on Wednesday.
The executive said there had not yet been any discussions with the New York hedge funds leading the litigation and that the offer would require them to take a haircut.
"The idea is to sit down with the funds and buy all their debt. We have to negotiate the final amount, the terms and how payment will be made," the executive told Reuters.
The Argentine holdout creditors' lawyer discussed the terms at the mediator's office in New York on Wednesday, a Reuters witness said. The nation's economy minister, Axel Kicillof, also attended the meeting.
The holdout funds are demanding demand full repayment on bonds they bought at a discounted rate after the country last defaulted in 2002.