Grenada 25: EMTA is recommending that flat trading commence on March 13, 2013

As you may be aware, Grenada announced on March 8, 2013 that it will begin discussions with its creditors regarding a restructuring of its public debt, and confirmed that it will not have the resources to pay the interest payments on its 2025 bonds due on March 15 (nor does it expect to have the funds to do so within the relevant grace period). EMTA Members may access the full text of the Press Release by Clicking Here; or you may copy and paste the following link into your internet browser:http://www.emta.org/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=7948

Accordingly, after consultations with major market participants, EMTA is recommending that flat trading commence on March 13, 2013 (unless otherwise agreed). EMTA Members may access the full text of the Market Practice recommendation by Clicking Here;or you may copy and paste the following link into your internet browser: http://www.emta.org/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=7952

EMTA offers a wide range of Emerging Markets information. Please see our website at: http://www.emta.org

This e-mail was sent from EMTA, Trade Association For The Emerging Markets (eramirez@emta.org) to rolfjkoch@web.de.

Ranking des Grenada 12 // sanfte pari passu clause ?

Ranking
The notes will be general, direct, unconditional, unsubordinated and unsecured obligations of the
Government and will be backed by the full faith and credit of the Government. The notes will be Public
External Debt of the Government. The notes will rank equally among themselves and with all other
existing and future unsubordinated and unsecured Public External Debt of the Government.

Grenada 9.375 Grena12 Nts-S USP48863AA55 // ein pari passu play in New York ?

Guten Morgen Herr Koch

Gemäss Bondhandel stellt JP Morgen für eine Million USD folgende Preise; Bid 31 / Ask 54 (indikativ)

Bitte teilen Sie mir mit, ob ich einen Kaufauftrag im Markt platzieren soll.

Danke und einen guten Tag.

Freundliche Grüsse

ISIN:	USP48863AA55
NSIN:	AT: 860920 CH: 1442330 Common: 015049251 DE: 860920 GB: 2962551 US: P48863AA5

Belize....schon wieder ein swap mit Einbussen...

PRESS RELEASE FOR IMMEDIATE RELEASE
March 8, 2013
Belize Debt Exchange Offer Successful
Belmopan, Belize: The Government of Belize announced
today that holders of 86.17 percent of the country's U.S. Dollar Bonds due
2029 (the “2029 Bonds”) had tendered their bonds in response to Belize's
February 15, 2013 offer to exchange those instruments for new Belize U.S.
Dollar Bonds due 2038 (the “2038 Bonds”). Belize's offer required tenders
to be submitted to Citibank, in its capacity as the Exchange Agent for the
transaction, by 5:00pm (New York time) today.
Under the terms of the 2029 Bonds and Belize's exchange
offer, holders of not less than 75 percent of the 2029 Bonds have instructed
the Trustee for those instruments to tender the entirety of the 2029 Bonds in
exchange for 2038 Bonds in accordance with the terms of Belize's offer.
The results of the tender process that ended today means that such an
exchange of the entirety of the 2029 Bonds is expected to take place at a
closing of the transaction later this month.
* * * *
Questions regarding this press release may be directed to
Joseph Waight, Financial Secretary (+501 822 0367);
(financial.secretary@mof.gov.bz)

Grenada Bond.....ca 54 % nur noch 6 Mio ausstehend

Werter Herr Koch

Der Handel kann nur indikativ einen Kaufkurs von 54 geben, ob die Menge von 100‘000 verfügbar wäre, ist unsicher, da nur noch 6 Mio. ausstehend sind.

Ich hoffe, Ihnen damit dienen zu können und verbleibe mit freundlichen Grüssen

Handelseinstellung: USP48863AA55 Grenada, Government of... Grenada 16.02.2011 7823

Bekanntmachung Freiverkehr (Open Market)
Einstellung Anleihen
Kündigung der Einbeziehung und Einstellung der Preisfeststellung:
Nr. ISIN Börsen-
kürzel
Name Land Letzter
Handelstag
Skontro
1. XS0542650188 AIB Mortgage Bank Irland 16.02.2011 7637
2. CH0124138790 Pfandbriefbank schweizerischer
Hypothekarinstitute
Schweiz 16.02.2011 7812
3. USP1330HAZ75 Banco Hipotecario S.A. Argentinien 16.02.2011 7823
4. XS0074563015 Buenos Aires, City of... Argentinien 16.02.2011 7823
5. USP48863AA55 Grenada, Government of... Grenada 16.02.2011 7823
6. USG9191BFV56 Unibanco - União de Bancos Brasileiros
S.A.
Brasilien 16.02.2011 7823
7. DE000NLB5ME3 Norddeutsche Landesbank Girozentrale Deutschland 16.02.2011 8710
8. DE000A1AZUQ7 Citigroup Funding Inc. USA 16.02.2011 8732
Frankfurt am Main, 16.02.2011
Deutsche Börse AG
Sollten Sie noch Fragen haben, wenden Sie sich bitte an:
If there are any questions, please contact:
Listing & Issuer Services 069 211 13555
Market Supervision 069 211 11050

http://deutsche-boerse.com/INTERNET/IP/ip_beka.nsf/0/89C403E12957F57DC125783900505AEB/$File/Einstellung_Anleihen_FV_20110216.pdf?OpenElement

Government of Grenada:2005-15.9.25 Reg S Step Up (UNSUBORDINATED)

Grenada 25 SU Reg S (DUS) - 15.09.2025  Price: 48 USD Chg. (in%): ±0 USD (±0.00%) Volume: - Bonds:Government of Grenada:2005-15.9.25 Reg S Step Up (UNSUBORDINATED) Symbol:   Type: Floating Rate Note Industry: Länder/Zentralregierungen Valor: 2282281 Domicile: Grenada Exchange: Boerse Dusseldorf AG

Klage Im-Ex-Bank-China v Grenada
http://ftalphaville.ft.com/files/2013/03/13cv014501.pdf

Pari passu, the cross-sovereign contamination

Joseph Cotterill

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Mar 06 18:16 | 4 comments | Share

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Part of the PARI PASSU SAGA SERIES

Some excerpts from a lawsuit filed by the Export-Import Bank of China (Taipei) against Grenada in a United States district court on March 4, 2013…

If you have been following the pari passu saga on ratable payment of sovereign debt — they tell their own story. (Click to enlarge all images.)

1.) Ex-Im Bank already has a judgement on $32m of debt defaulted on by Grenada.

2.) The loan debt had a pari passu clause, and negative pledge language.

3.) Let’s just spell that last bit out, as cited by Ex-Im Bank.

According to their plain language, the pari passu clauses preclude Grenada from making a ratable payment to a holder of External Indebtedness without making a ratable payment at the same time to Ex-Im Bank.

4.) Ex-Im Bank stayed out of Grenada’s 2005 debt restructuring.

5.) It has been watching Grenada pay the people who did restructure.

6.) Bank of New York handled some of that dough. Bank of New York lives in New York.

7.) Ex-Im Bank is now coming after these payments to Grenada’s restructured bondholders. (Hello, intercreditor consequences of ratable payment.)

8.) And Ex-Im Bank’s citing equity.

They didn’t even wait for a final Second Circuit ruling on Argentina making ratable payments to its holdouts. (Why should they, actually? The implications of ratable payment are arguably clear.)

Incidentally observe point 1) there, that Ex-Im Bank is exploring this avenue having already won judgement against Grenada. (The story of their dispute is a long one.)

The $1.3bn of claims involved in NML’s pari passu litigation against Argentina were not judgement debts. Nevertheless. EM Ltd, which holds a prior judgement against Argentina, said (in a pro-holdout amicus brief) that while “the District Court has not yet been asked to address whether the Equal Treatment Provision can be used to enforce an existing judgment,” EM Ltd “believes that the Equal Treatment Provision applies with identical force in the post-judgment context”.

And now we have crossed into new territory.

PARI PASSU SAGA SERIES

The "trial of the century" in sovereign debt restructuring, in our humble opinion. The story of Argentina, its holdout creditors, the grande finale (or is it?) of their battle in US courts.

1. A pari passu upset?
2. Around the world in Argentine bond payments?
3. Argentina, padlocks and vultures
4. Argentina, holdouts, and finding a formula
5. Friends...don't let friends leave the Republic of Argentina to litigate the sovereign debt trial of the century
6. L'état, c'est plagued by holdouts
7. Poker with Judge Griesa, part one
8. Poker with Judge Griesa, part two
9. Booking bondholder flights to Buenos Aires?
10. Stop, in the name of restructured Argentine bondholders [updated]
11. Stayin' alive, Argentina edition
12. Argentine jujutsu (and enter... Bank of New York)
13. You, in the holdout suit! Stay as you are
14. All of this has happened before and will happen again, sovereign pari passu edition
15. If you're going to CAC, now might be a good time -- Greece edition
16. Tom, Dick and Harry in Rome
17. Fairytale of New York -- in pari passu, anyway
18. Present at the creation, pari passu edition
19. Here's holding out on you, kid
20. Argentina, and penultimate pari passu case games
21. Choose your own adventure, sovereign debt trial of the century edition
22. A sovereign risk factor is born
23. I can't Belize it's not ratable payment [updated]
24. Give us a formula, Argentina
25. "Repent, Argentina!" said the ticktock judges (part one)
26. "Repent, Argentina!" said the ticktock judges (part two)
27. Raising the RUFO in Argentine bonds
28. Pari passu, the cross-sovereign contamination

This entry was posted by Joseph Cotterill on Wednesday March 6th, 2013 18:16. Tagged withArgentina, Debt Restructuring, Grenada, Pari Passu Saga, Sovereign Debt.

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1. Reportplasmaj | March 6 6:46pm | Permalink

   Except when they got their judgment they gave up their rights with respect to the bonds, including pari passu. Citi had a good piece explaining that.
2. ReportJorge Marquez | March 6 7:31pm | Permalink

   Can you link that plasmaj? Or, at least, elaborate on what you just said. I'm intrigued...
3. Reportanoldbanker | March 7 2:36pm | Permalink

   Argentina's equal treatment clause applies to payments; Grenada's only applies to ranking of the different debts. This is a critical distinction thoroughly discussed in academic analyses of pari passu.
4. ReportJoseph Cotterill, FT | March 7 5:20pm | Permalink

   anoldbanker & plasmaj - Yep. Sure, it's not a particularly cast-iron case in itself (I think) because of the judgement issue and the lack of payments language. But it is striking and a sign of an important change that they thought they can even try.