Bondholder Groups Reject Ecuador's Restructuring Offer

• Three groups of bondholders have responded to a proposed bond swap from Ecuador with two groups rejecting it and one expressing support, according to separate statements on Monday.
• A group of 25 institutional investors, including Amundi, Contrarian Capital Management, Grantham Mayo Van Otterloo (GMO) and T Rowe Price, dismissed the offer, saying "the terms... do not represent Ecuador's best effort to reach an equitable restructuring with a majority of bondholders or its ability to implement social development goal principles to build a sustainable future."
• Another group of holders of Ecuador's 2024 notes also refused Ecuador's offer. Together, the two groups hold more than 25% of Ecuador's bonds and more than 35% in certain series.
• On the other hand, a group of bondholders that includes AllianceBernstein, Ashmore Group, Ayres Management, BlackRock, BlueBay Asset Management and Wellington Management came out in support of Ecuador's plans to restructure $17.4Bn in outstanding bonds. The group, which calls itself the Ad Hoc Group of Ecuador Bondholders, holds more than 53% of Ecuador's sovereign bonds.

(Source: LatinFinance)