![]() ![]() ![]() The tender is conditional on participation from local and international creditors holding at least 90% of the principal amount, so Bingham is said to be trying to get 10%-plus on board to gain some leverage against the FGC proposal. Law firm Bingham McCutchen is trying to organize a critical mass of investors to contest a tender offer for some US$1.6bn in outstanding dollar bonds. “Clients think they have to pay for the lack of work that the central bank should have done,” noted one US-based trader. Cruzeiro is the fourth Brazilian mid-tier bank to go bankrupt in recent years. The move has left much of the buyside up in arms, feeling they are taking the fall for what they see as poor oversight by the central bank. This is the stark choice facing bondholders after the local deposit insurance fund, FGC, unveiled plans to cover capital shortfalls at Cruzeiro and prepare the bank for a possible sale. Aug 17 (IFR) - Investors holding Banco Cruzeiro do Sul bonds may have to accept substantial haircuts or take their chances with a liquidation of the Brazilian mid-tier bank. ![]()
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