NEW YORK, Jan 10 (IFR) - The trustee of Belize's so-called
superbond has officially recognized a bondholder committee to
hold talks with the government on the country's third
restructuring in a decade.
Funds including Greylock Capital Management and Grantham
Mayo van Otterloo joined forces to form the committee, which was
assembled last month to represent bondholders.
Now trustee Bank of New York Mellon has formally approved
the committee to negotiate with Belize, which says that its
US$530m bond, issued in 2013, is unsustainable.
The bond, which comes due in 2038, came out of the
restructuring of a previous note that itself was the
consolidation of other debt in a 2007 restructuring.
In a memorandum to BNY made public this week, Financial
Secretary Joseph Waight said Belize intends to "imminently" seek
the consent of bondholders to amend the terms of the notes.
Waight cited "unforeseeable factors" facing the country
since the 2038 bond was issued, including a drop in exports,
economic contraction last year and damage from Hurricane Earl in
The committee said in a note released late on Monday that it
looks forward to an "equitable and sustainable" agreement with
But the committee, which also includes Steadfast Insurance
Company and Capital Markets Financial Services, wants fiscal
reform alongside any potential debt relief for the country.
The committee has retained BroadSpan Capital as financial
adviser, Blitzer Consulting as special adviser and Arnold &
Porter Kaye Scholer as legal adviser.
Belize has hired Citigroup as structuring adviser and Cleary
Gottlieb Steen & Hamilton as legal counsel.
(Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)