Dart received a judgment for about $US725 million, including interest, and by accepting 150 per cent of the principal will be repaid about $US890 million. His claim would currently be worth less than that, at about $US850 million, according to data compiled by Bloomberg.
"Argentina bought Dart's support by agreeing to pay its claim in full," Brodsky said. "Aurelius would gladly accept such generosity, though we have always been willing to take a haircut."
Kenneth Johns, an attorney for Dart, said in an e-mail that the two parties "were able to reach an agreement in principle settling our substantial unpaid judgment."
"Argentina's constructive approach to the negotiations this week, and the very significant settlement offer publicised on Friday, demonstrate the government's genuine commitment to bringing this long-running dispute to an end," he added.
For investors such as Brodsky and Singer, most of their claim on their bonds that don't have a judgment comes from the interest accrual. Some of the bonds Singer owns accrue interest at an annual rate of more than 100 per cent, according to court documents.
Elliott also owns bonds with $US1.7 billion in judgments. Stephen Spruiell, a spokesman for Elliott, declined to comment.
Argentina's proposal offered to pay the creditors in cash raised from issuing bonds abroad, sales that would require them to drop or suspend the lawsuits that prevent the country from accessing international capital markets.
Prat-Gay said that each agreement he reaches will put additional pressure on the remaining holdouts to settle. With enough participation, the judge may be convinced to suspend the ruling against the nation, he said.
"Then, if one fund wants to hold out, they're going to have a tough time," Prat-Gay said in a interview on Radio Mitre.
The proposal came days after Argentina announced that it reached an agreement to pay 50,000 Italian bondholders 54 per cent of their $US2.5 billion claim on defaulted debt in cash. Those creditors also accepted payment of 150 per cent of principal.
The Italian accord and the one reached Friday are subject to approval from Argentina's Congress, which would also need to repeal a law that prevents the country from providing the holdouts with better terms than those the nation offered in restructurings.
Argentina and the remaining holdouts are "working constructively" to resolve their differences and reach an agreement, Pollack wrote in a statement Friday.
Argentina, which borrowed more money internationally than any developing nation in the 1990s, defaulted in late 2001 following a four-year recession. A one-to-one currency peg to the dollar had made local companies lose competitiveness after Brazil, its largest trading partner, devalued its currency in 1999.
"There's still a long way to go in terms of the additional agreement with the other holdouts, but this is a very positive step towards that," said Gerardo Rodriguez, a money manager at BlackRock in New York. "The negotiations haven't been easy for anybody, so it's going to take some time."