Senegal bondholders pick financial adviser for debt talks, warn against haircuts
TLT•A group representing holders of Senegal’s international bonds chose Alvarez & Marsal as financial adviser for debt talks and warned the government that requests for principal losses could significantly delay negotiations.
1. Adviser selected
A group representing holders of Senegal’s international sovereign bonds chose restructuring consultancy Alvarez & Marsal as its financial adviser for ongoing debt treatment talks with the government, three sources with direct knowledge of the matter said.
2. Bondholder warning
Bondholders sent the government a letter roughly 10 days ago warning that requests for principal losses, known as haircuts, could significantly delay negotiations. The letter responded to a government request for major creditor groups to share their red lines.
3. Debt negotiations
Senegal announced plans last month to rework its debt to secure a $2.2 billion IMF bailout loan. The bondholder group, represented legally by White & Case, holds bonds with $2.2 billion in face value out of $5.2 billion outstanding. Senegal told creditors last week it was targeting agreements with official creditors and bondholders by December.
