Portofino Resort- Now with a new BEACH BAR!!
Page 2 of 2 < 1 2
Topic Options
#519737 - 12/13/16 06:20 AM Re: Superbond 3.0? [Re: Marty]
Marty Offline

P.M. Still Has High Hopes for Superbond 3.0

The prime minister’s health aside, the call to New York was for the three-man team, including Economic Ambassador Mark Espat and Financial Secretary Joseph Waight, to sit down with government’s advisors.  The meeting with representatives of Citigroup Global Markets and Cleary Gottlieb Steen and Hamilton was to ensure that they were all on the same wavelength insofar as an agreed position going into discussions with the Belize Coordinating Committee.  Despite the dismal economic conditions, the idea, according to PM Barrow, is to be able to conclude the restructuring of the Super Bond 3.0 ahead of the next scheduled interest payment in February 2017.

Prime Minister Dean Barrow

“I did not meet with the bondholders.  I went to meet with our team prior to their meeting with the bondholders because this is the point now where the rubber is beginning to meet the road.  Certain things have happened since I last met with the team that required us to do a rethink of our objectives and our strategy and I had to be perfectly sure that we were all on the same page, that in the meeting with the bondholders which took place the day following my meeting with the team, that is Ambassador Espat, the FS, the advisors from CitiGroup and our attorney Lee Buchheit.  I had to be absolutely certain that what would be taken into that meeting with the bondholders would, in its broad outlines because all the details have not yet been presented but I had to be sure that what was being said represented an agreed position, a position that we had properly worked out.  So that’s where I played my role.  The meeting that took place the following day with the bondholders, we put up on the Central Bank website the contours of the thinking that informs the representations we made to the bondholders.  There is expected to be another meeting before Christmas at which the actual detailed negotiations will commence and then, after the start of the new year, we are hoping that we can reach a point where, before we do a formal launch of our proposal, the discussions with the bondholders would have progressed to a point where basically we would be in agreement as to how should all come out.  I will see how the next meeting goes and in terms of the final meeting or meetings in the new year, we are hopeful that we should have reached a point where we would be able to wrap this thing up certainly in time for the finalization of the budget here and before the next interest payment on the bond is due.  So that’s what we are looking at, that’s what we are working on.”

Can Belize Make February Payment for Superbond? G.O.B. Won’t Say

On Friday, News Five spoke with Charles Blitzer, special advisor to the Belize Coordinating Committee.  During that interview he disclosed that bondholders have pored over government’s recent postings on Central Bank’s website and that they are studying those figures carefully.  While those online messages reflect poor economic conditions, there are serious concerns as to whether government will be able to meet the next tranche of interest payments due early next year.

Isani Cayetano

“There’s a schedule for February 2017 for another payment towards the Super Bond.  Is this the interest payment that you’re speaking of?  Where do we stand with regards to that?  Will the government be able to meet that payment?”

Prime Minister Dean Barrow

“That’s what I am saying, we are hoping, that is why we are pushing, we are hoping that by then we would have reached a point where we would have pretty much agreed on the restructuring and that would then overtake that payment.  In other words, if there are new terms that payment would be subsumed within those new terms.  It’s not a certainty that in fact we will conclude the negotiations by then but that is what we are aiming for, that is our objective.”

Government has acknowledged the date set for the February 2017 payment, but has gone no further in providing additional details.

Channel 5

Understanding Superbond

#520728 - 01/07/17 06:11 AM Re: Superbond 3.0? [Re: Marty]
Marty Offline

Belize Gets Closer to Renegotiating Superbond 2038

The last we heard of the renegotiations of the Superbond 2038 was around Christmas time when Prime Minister Dean Barrow noted that another round of talks were due prior to the New Year. He also added that it is the hope of the Government that the bondholders would approve their proposal and that everything would take effect prior to the due date of the first payment in February.

We are yet to get an official statement from the Government but according to reports reaching our news centre, Belize has gotten more than the required seventy five percent approvals from the bondholders. The approval is only verbal thus far and will be reportedly penned in the coming days. In a letter dated today, January 6; sent to the Managing Director of the Bank of New York Mellon Corporation, which is the Trustee under Belize’s US Dollars Bond, it noted, quote, “the current expectation is that the Consent Solicitation will be launched next Thursday, January 12, 2017.

If Belize receives the consent of the holders of at least seventy five percent of the outstanding principal of the bonds, Belize would expect to sign the first supplemental indenture with the trustee in order to implement the amendments described in the Consent Solicitation Statement.” End of quote.

This letter was sent to the bank at the request of the Government of Belize since under the terms and conditions of the Superbond agreement, Belize must publish the debt sustainability analysis (DSA) and whether Belize has a “stand by agreement” with the International Monetary Fund. As we mentioned, we have been informed that Belize has gotten the required consent verbally from the bondholders.


#520790 - 01/11/17 06:12 AM Re: Superbond 3.0? [Re: Marty]
Marty Offline
Bondholders Approve Re-negotiations and Debt Restructuring for Belize

ON Monday we told you of a letter dated January 6 informing Belize’s bond trustees in New York of the appeal by Belize to restructure its Superbond 2038 due to unforeseen financial challenges experienced in 2016. Today, we can tell you that the bondholders have approved Belize’s request for renegotiations and a restructured national debt. According to Reuters News Agency, “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 August.

The committee said in a note released late on Monday that it looks forward to an “equitable and sustainable” agreement with the government. 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.


#520882 - 01/14/17 06:14 AM Re: Superbond 3.0? [Re: Marty]
Marty Offline

Belize Offers Bondholders 4%

2 and a half months ago, we told you about the Barrow Administration's attempt to convince holders of the Superbond to restructure for a third time. Well, Government has now presented an offer to bondholders.

Principally, government wants to adjust the interest rate. That rate is currently 5% per annum, stepping up to 6.77%, starting August 20 of this year. The Government of Belize wants to amend that by fixing it at 4% per annum starting with the next payment, which is due in a month.

To make the offer more attractive, Belize is also offering to pay holders a consent fee of 0.25% of the face value of the bond. This consent solicitation, which is simply an invitation to discuss, closes in two weeks, on January 26, 2017.

Financial Secretary Joe Waight says that Belize is not asking for any reduction in the principal, and neither is the country proposing to extend the final maturity date of the Bonds. "The proposed amendments," Waight said, "will only adjust the amortization schedule of the Bonds within its existing maturity profile and effect a modest reduction to the interest rate."

It's left to be seen how the bondholders react.

Channel 7

Belize tries to change superbond schedule

Belize has launched a consent solicitation in an effort to amend the amortization schedule and lower coupon payments on its 2038 bond.

The Central American country wants to cut the interest rate on its so-called superbond to 4% per annum starting February 20 until maturity.

The bond currently pays 5% annually, with a step up to 6.767% starting August 20.

It also wants to adjust timing of principal payments from the current 38 semi-annual installments starting in 2019 to three equal amortizations on February 20 of 2036, 2037 and 2038.

"The two amendments ... are, we believe, the mildest adjustments to the terms of the bonds that will still achieve the objective of putting the bonds on a fully sustainable basis," Belize Finance Secretary Joseph Waight.

In return, the sovereign is offering holders a consent fee of 0.25% of the face value. The consent solicitation expires on January 26. Citigroup is acting as agent on the transaction.

The announcement comes just days after the trustee of the bond officially recognized a bondholder committee to hold talks with the government on Belize'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.

Trustee Bank of New York Mellon 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. (Reporting by Paul Kilby; Editing by Marc Carnegie)


#520968 - Yesterday at 05:28 AM Re: Superbond 3.0? [Re: Marty]
Marty Offline

Superbond Setback: Bondholders Reject Belize Offer

Here's a blow to Belize which has made a direct hit. It came this morning from New York and Boston where the committee representing holders of the Superbond rejected the offer made by Belize 5 days ago. As we told you that offer was to cut the interest rate on the Superbond from 6.75% to 4%, and to soften the bullet payments by deferring principal payments.

Well, a release from the Committee today says, quote, "its members have reviewed and decided to decline the consent solicitation...launched by the Government of Belize on January 12, 2017."

It goes unto say "the proposed amendments to the terms and conditions of the Bonds...would crystalize a further reduction in the net present value of the Bonds in excess of 40%, in addition to a cumulative reduction of more than 50% already provided by bondholders in restructurings of predecessor instruments to the Bonds in 2007 and 2013." End quote.

Because of this "The members of the Committee view the Consent Solicitation as premature…it will not be completed without the consent of members of the Committee, who will not provide such consent at this time… The Committee also recommends that all bondholders decline to give their consent to the terms of the Consent Solicitation at this time." So…no consent…means no deal. And we spoke with the spokesperson for the bondholders today. He is Charles Blitzer in Washington DC. Here's how he put it:...

Charles Blitzer, Bondholder Committee SPOKESPERSON
"What's being asked is a reduction in the value of the bonds compared with the value of the current bonds"

"It is unprecedented for a country to attempt to restructure the same debts three times in less than 10 years, and the committee believes that this should the final time, and what's required is a strong credible programme, which we haven't yet seen all of the necessary evidence that this would be the last time."

"But we're looking for a government programme that is strong enough and credible enough to have confidence in that the bonds won't have to be re-structured again in a few years."

"We want to be part of the solution, but we can't be the solution."

Jules Vasquez, 7News
"The offer from the government of Belize will close on the 26th, I believe. Do you expect the bondholder group to be meeting with the government?"

Charles Blitzer, Bondholder Committee SPOKESPERSON
"What happens next I wouldn't put a particular day, deadlines on that. I hope that we and the government can make progress as rapidly as possible, but we can't impose any particular deadlines on these things."

Jules Vasquez, 7News
"Well, we have a month until the next payment."

Charles Blitzer, Bondholder Committee SPOKESPERSON
"The next payment is already budgeted, it's in the existing budget which has been approved."

Jules Vasquez, 7News
"They haven't paid before. They didn't pay in August of 2013, was it? Or they made a half payment, I believe."

Charles Blitzer, Bondholder Committee SPOKESPERSON
"The money is budgeted, let me leave it at that."

The release also states, quote, "the Committee's preliminary conclusion is that the proposed adjustment program is unlikely to reduce future risks to debt sustainability or to the stability of the country's currency peg in a sufficient manner. As such, the Committee urges the GOB to seek technical assistance in further developing a comprehensive home-grown adjustment program that can ultimately be endorsed by Belize's multilateral partners." End quote.

Today in Orange Walk, the leader of the opposition told CETV-3 News that he isn't surprised at this turn of events:..

Hon. John Briceno, Leader of the Opposition
"We are not surprised that this was rejected outright by the bondholders. We knew that was going to happen because the UDP has a poor track record when it comes to keeping up with its commitments. Now, if you are bondholder and they - I've already come and tell you I can't pay, so we need to restructure. and then you restructure in good faith and then you come back again in just 3-4 years later and say I can't pay you again, so I want to restructure. Nobody is going to take you serious and that is the problem that we are finding with the government's strategy in trying to reorganized or restructure the UDP super bond."

Briceno also discussed the possibility of a GOB default - or partial default. The next Superbond payment is due in February, and in previous negotiations the Government has with-held payment as a negotiating tactic. Briceno warned against that:...

Hon. John Briceno, Leader of the Opposition
"I am very concerned that the UDP will try to play "chicken" to see who blink first; we or the bondholders. Because if we were to default there would be an immediate increase into what we owe the bondholders. It is going to go up about 11% more."

"We have to ensure that we don't default. We have to ensure that the government comes up with a credible plan."

The next payment is due on February 20. As for government, they have not issued a release or statement, but, the conventional wisdom is that this sort of back and forth, rejection leading to compromise is standard part of negotiation, especially when bondholders are being asked to give up 40% of their Net Present Value.

Channel 7

Page 2 of 2 < 1 2

Click for excellent scuba lessons with Elbert Greer!

Things to do

Daily News
Daily Weather

Classified Ads
San Pedro Sun
Ambergris Today
SP Town Council
Channel 7
Channel 5
Love FM
The Reporter
Caye Caulker

TV Newscasts
Radio Stations

Click for our
Search thousands of Belizean-only websites

Event Guides
Event Calendar
Specials & Events
Things to Do
iTravel Belize
Paradise Theater

San Pedro Scoop!
Tia Chocolate
My Beautiful Belize
I-Travel Belize
Belize Adventure
Belize Hub
Romantic Travel
Bound for Belize
Conch Creative
As The Coconuts Drop
More Blogs...
Search thousands of Belizean-only websites
Chaa Creek is an award-winning luxury Belize Resort, rated as one of the worlds best Eco Lodges. We are a pioneer in adventure travel to Belize since 1981!
White Sands Dive Shop - 5 Star PADI Dive Facility - Daily diving, SCUBA instruction and Snorkeling
Caribbean Inspired All Natural Condiments & Spice Blends, Over 100 are Gluten Free!
We manage a variety of homes, apartments, condos and commercial properties here on Ambergris Caye. Our minimum lease on ALL properties is six months.
Conch Shell Inn: All rooms are right on the beach in the heart of San Pedro, so within walking distance to anything and everything!!
Lil’ Alphonse has snorkel equipment to fit anyone as well as Marine Park Tickets and flotation devices to assist those not as experienced.
Coastal Xpress offers a daily scheduled ferry run to most resorts, restaurants and private piers on the island of Anbergris Caye. We also offer  private and charter water taxi service.
Mini Chat

Cayo Espanto
Click for Cayo Espanto, and have your own private island
More Links
Click for exciting and adventurous tours of Belize with Katie Valk!
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Who's Online
0 registered (), 42 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Forum Stats
18,716 Registered Members
44 Forums
64,345 Topics
463,144 Posts

Most users ever online: 1,262 @ 06/10/07 07:16 PM

AmbergrisCaye.com CayeCaulker.org HELP! Visitor Center Goods & Services San Pedro Town
BelizeSearch.com Message Board Lodging Diving Fishing Things to Do History
BelizeNews.com Maps Phonebook Belize Business Directory
BelizeCards.com SanPedroDaily.com Picture of the Day

The opinions and views expressed on this board are the subjective opinions of Ambergris Caye Message Board members
and not of the Ambergris Caye Message Board its affiliates, or its employees.