Ecuador’s US$ 17,4bn debt restructuring plan faces divided bondholders- Merco Press

Ecuador’s government will likely have to sweeten its offer to creditors in order to reach an agreement to restructure US$ 17.4 billion in bonds, say analysts. The government’s proposal already has the backing of one group of creditors, holding around half of the bonds and including AllianceBernstein, Ashmore and BlackRock.

However another group of bondholders have said the terms must be improved, though it declined to say what percentage of creditors it counted among its members.

The government most likely will need to negotiate the terms of the initial offer somewhat to entice the two-thirds aggregate majority of bondholders, or 75% in the case of the 2024 bonds, to accept the proposal, said Tiago Severo, vice president of Latin America economic research at Goldman Sachs.

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