PRIME MINISTER OF BELIZE HANGS TOUGH. WE WILL NOT ACCEPT ANY TERMS THAT ARE UNSUSTAINABLE ON SUPERBOND RESTRUCTURING

 Dean Barrow, Prime Minister of Belize.

SUPERBOND RE-STRUCTURING TIME PERIOD WILL SOON EXPIRE AND WE WILL BE IN DEFAULT.


Three factors affecting restructuring.

1. New World CEO is projecting US$8.2 billion at Blue Creek 

within the next year. This of course is just HYPE at this point, to reassure investors in the drilling rigs.

2. A Court in New York on October 26 ruled that you cannot discriminate against 

different  creditors by making payments on restructured debt while refusing to pay holders of its defaulted bonds.

Now the IDB and the IMF is taking a hard look at what this means because by them offering a guarantee for the Belize debt

they assumed that by  convention they are “senior” in any loan now the court seem to be saying ‘preferential payments’ is a no no ..

3. BTL nationalization.

The investors strategy is to buy time and they only have one way to do that  and time is our enemy. 

In less than 2 weeks the 60 day window will come to a close  and we expect Belize to announce a default or that we have successfully restructured the superbond.

We also have another possible outcome and if that is the case we might as well call it a day.