Distressed-Debt Funds Team Up as Lebanon Bonds Plunge to Records - Bloomberg:
Lebanon’s foreign debt sank to a record low as speculation mounted that the government may not repay a $1.2 billion Eurobond due in less than a month.
Investors are pondering the possible shape a default might take, with the crisis-ridden nation’s government wrangling over whether to continue servicing its debts. Distressed-debt investor Greylock Capital Management and Lugano-based Mangart Capital Advisors announced they and other bondholders have formed a group to talk to the government about its options.
The $1.2 billion of notes, due on March 9, plunged 10 cents to 72 cents on the dollar as of 2:32 p.m. in London. Lebanon’s $2.1 billion bond maturing in April next year fell 7 cents to 39, with the yield climbing above 100% for the first time.
“This group will facilitate communication between disparate creditors and stands by to engage with the Lebanese Republic in any discussions,” Hans Humes, chief executive of New York-based Greylock, said in an emailed statement.
Lebanon’s foreign debt sank to a record low as speculation mounted that the government may not repay a $1.2 billion Eurobond due in less than a month.
Investors are pondering the possible shape a default might take, with the crisis-ridden nation’s government wrangling over whether to continue servicing its debts. Distressed-debt investor Greylock Capital Management and Lugano-based Mangart Capital Advisors announced they and other bondholders have formed a group to talk to the government about its options.
The $1.2 billion of notes, due on March 9, plunged 10 cents to 72 cents on the dollar as of 2:32 p.m. in London. Lebanon’s $2.1 billion bond maturing in April next year fell 7 cents to 39, with the yield climbing above 100% for the first time.
“This group will facilitate communication between disparate creditors and stands by to engage with the Lebanese Republic in any discussions,” Hans Humes, chief executive of New York-based Greylock, said in an emailed statement.
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