Chevron's Views
And Opinions On
The Ecuador Lawsuit.

Ecuador debt restructuring faces setback after some creditors balk- Financial Times

Date: Jul 17, 2020

Ecuador is coming under pressure to sweeten its $17.4bn debt restructuring after some bondholders balked at the terms of the deal it presented earlier this month.

The country — one of the poorest in Latin America — said in March that it would be unable to repay all its debts as it deals with the fallout of Covid-19 and a collapse in oil prices. Earlier this month, the government announced a provisional agreement to cut and stretch out repayments, with the backing of the holders of around half of its bonds, including heavyweights Ashmore and BlackRock.

But not all bondholders are on board, echoing a tussle between holders of defaulted Argentine debt. This week, two sets of bondholders — one advised by UBS and BroadSpan Capital, and another holding bonds that mature in 2024 — put forward a counterproposal, calling for modifications that they said would garner “the support of a supermajority of bondholders”.

To read the full article on Financial Times, click here.