Bloomie’s Kueffner tells it better than I can and in fewer words, so here’s his note:
By Stephan Kueffner June 11 (Bloomberg) — Ecuador bought back 91 percent of its defaulted bonds due 2012 and 2030 and will re-open its offer to bondholders who didn’t participate, Finance Minister Maria Elsa Viteri said.
Viteri disclosed the results today in Quito after the buyback offer ended on June 3. President Rafael Correa, who said in December that he was refusing to repay the $3.2 billion in bonds, was present at Viteri’s speech.
Viteri said 18.7 percent of the holders of the 2012 bonds didn’t participate, while 7.2 percent of the holders of the 2030 bonds didn’t take part. The government will offer these holdouts 35 cents on each dollar of the bonds’ face value, the same term as the initial offer.
She reiterated that Ecuador defaulted on the debt because it had evidence that crimes were committed in connection with its issuance.
To contact the reporter on this story: Stephan Kueffner in Guayaquil at firstname.lastname@example.org