Sources reveal that Sri Lanka has presented a revised restructuring proposal to sovereign bondholders as the nation endeavours to conclude debt restructuring by mid-year while contending with legal action from a holdout investor seeking payment on a specific series of bonds.
A US court has temporarily halted proceedings initiated by the holdout investor, Hamilton Reserve, for six months, with the deadline set to expire on February 29. However, an extension of at least three months is being considered to facilitate the restructuring process, according to insiders. Sri Lanka remains optimistic about signing memoranda of understanding with the Paris Club in the coming weeks.
Despite rejecting a bondholder proposal tied to GDP fluctuations and facing discontent from investors over perceived stagnation in negotiations, Sri Lanka aims to navigate these challenges to secure a viable solution amidst ongoing restructuring efforts.
Source: economynext
