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.
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