The clock continues to click on the Government’s Superbond renegotiations attempts. On Friday February 3rd, a second deadline in the Government’s proposed terms contained in a Consent Solicitation note expired with no agreement arrived at.
The Government has put on the table for the debt holders, three options they say would achieve debt relief. Those options are a reduction to the outstanding principal, amend the amortization schedule and coupon, or a maturity extension with amortization/coupon adjustment.
The Consent Solicitation was launched on December 6th and was initially due to expire on January 26th. When that deadline passed without any agreement reached, the deadline was extended to February 3rd. But that deadline has also come and gone, forcing the Government to now push back to February 10th as the new deadline. GOB is literally running out of time as it tries to strike a deal with bondholders. This is because a $23 million dollar payment is due on February 20th and GOB has indicated that under the present terms it would not be able to meet the payment.
Bondholders have indicated that while they are sympathetic to the challenges Belize faces, any proposed amendment that results in a net present value or principal loss to creditors would not, based on the committee’s current understanding of the situation in Belize, be considered acceptable or, for that matter, necessary.
Bondholders have also expressed, through their spokesperson Charles Blitzer, that the February 20th payment should not be a problem because the amount due was already budgeted by the Government.
Just exactly how this will play out is hard tell at the moment, but we will keep monitoring closely.