NML v. Argentina, the “trial of the century” in sovereign debt, is finally poised for settlement negotiations. International experience, advantages for the parties themselves, and even statements by the presiding federal judge, all suggest that it is high time for a settlement between Argentina and its holdout creditors. But major challenges remain. While not addressing all of them, we analyze key economic and legal factors underlying the NML litigation, with a particular emphasis on issues relevant to a potential settlement. We document the wide heterogeneity of holdout rates across Argentina’s 150 defaulted bonds (of which 74 still have holdout rates greater than 5 percent) and focus the subsequent analysis on the seven most held-out bonds. The bonds in our sample have holdout rates between 20 and 82 percent and account for about 30 percent of total holdout principal. We show that New York’s statutory real rate of interest on overdue interest has been 6.6 percent on average during the years affecting this suit compared to 3.1 percent during the previous forty years. As such, the New York statutory rate has become more punitive than compensatory. [...]