Finally the Hell.Republic decided to publish the results of the bondholder's meeting with respect to the Foreign law (mainly English) bonds. There were 36 bonds at stake with a total value of 20.4billion in nominal. The Hell.Republic's amendments were passed in 16 of the 36 with a total face value of 11.4billion. The majority of those passed (10 out of the 16) had a 75% majority rule and six had a 2/3. This points to a very friendly to the issuer bondholder mix.
For the rest 20 bonds of total face value 8.9 billion, 11 bonds voted against the amendment while 2 were postponed and 7 failed to reach a quorum.
May 2012
The one bond that would be of interest is the 450million that matures on the 15th May this year. So far Greece has said that is not going to pay any bonds but doing so in this particular bond would trigger a failure to pay. Now, you might ask what is the big deal. Greece defaulted few weeks ago anyway. One more would not be a significant event. The issue is the following. Greece triggered the CDS due to a restructuring event not because it failed to pay. We could say that Greece defaulted on technicalities rather than a real event. If Greece decides not to pay this one it would be the first European country that fails payment and it also means that any dispute would have to be resolved in English courts. If the bondholders remain solid it would mean a lot of trouble for Greece for many years to come in the future. This may not be market sensitive result but it certainly is important to Greece.
For the rest 20 bonds of total face value 8.9 billion, 11 bonds voted against the amendment while 2 were postponed and 7 failed to reach a quorum.
May 2012
The one bond that would be of interest is the 450million that matures on the 15th May this year. So far Greece has said that is not going to pay any bonds but doing so in this particular bond would trigger a failure to pay. Now, you might ask what is the big deal. Greece defaulted few weeks ago anyway. One more would not be a significant event. The issue is the following. Greece triggered the CDS due to a restructuring event not because it failed to pay. We could say that Greece defaulted on technicalities rather than a real event. If Greece decides not to pay this one it would be the first European country that fails payment and it also means that any dispute would have to be resolved in English courts. If the bondholders remain solid it would mean a lot of trouble for Greece for many years to come in the future. This may not be market sensitive result but it certainly is important to Greece.
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