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The International Monetary Fund (IMF) has approved a $600 million payout to Ghana as part of a three-year bailout program. This comes after Ghana reached a deal with bilateral creditors to restructure its debt. The IMF stated that Ghana's performance under the program has been strong, with most targets being met. The country is now working on restructuring its eurobonds and expects to finish negotiations with private investors by the end of March. The IMF hopes for progress in these discussions and plans to review Ghana's program in early April. [Extracted from the article]

The International Monetary Fund (IMF) has agreed to disburse $684.7 million to Kenya, which will help boost the country's foreign-exchange reserves before a significant eurobond repayment in June. This funding includes $624.5 million from an expanded program agreed with the IMF last year and $60.2 million from the Resilience and Sustainability Facility. The decision to provide additional funding aligns with the IMF's goal of supporting Kenya's efforts to sustain macroeconomic stability, strengthen policy frameworks, and withstand external shocks. The news has been well-received by bond investors, as yields on Kenya's eurobond have fallen. However, the Kenyan shilling has weakened against the dollar. This funding will also assist the government in shoring up its foreign-exchange reserves ahead of the eurobond repayment in June. Kenya is also exploring a debt swap to boost its public finances. Developing nations have been facing challenges in refinancing their eurobonds due to high-interest rates. [Extracted from the article]

EchoStar Corp., the parent company of Dish Network Corp., has proposed a debt swap of over $5 billion to address upcoming maturities. The offer allows holders of Dish notes due in 2024, 2026, 2028, and 2029 to exchange their notes for new instruments with a 10% coupon. The company plans to issue up to $3 billion of new notes. This is the second debt swap offer in less than a week, following a proposal to swap $4.9 billion of convertible debt for new bonds backed by wireless spectrum assets. Dish's 5.25% notes due in 2026 fell to 77 cents on the dollar following the announcement. [Extracted from the article]

Dish Network Corp.'s parent company has launched a debt swap offer worth $4.9 billion, allowing holders of convertible debt to exchange their notes for new secured securities backed by wireless spectrum. This move comes two days after Dish transferred valuable assets to a new legal entity, angering many bondholders. The debt swap offer aims to help the company reduce its $20 billion debt load and transition from its pay-TV business to wireless services. Dish's bondholders are exploring legal options following the asset transfer, and the company's bonds have experienced significant declines in value. [Extracted from the article]

Dish Network's parent company, EchoStar, has offered to exchange $4.9 billion of convertible debt for new bonds backed by wireless spectrum in an effort to reduce its significant debt. The deal would also eliminate most investor protections in the existing notes. The new bonds would be secured and pay a 10% coupon, backed by spectrum valued at approximately $9 billion. Dish recently transferred some wireless spectrum licenses to EchoStar, which has caused concern among bondholders and led to a decline in the value of Dish's bonds. [Extracted from the article]

China's efforts to reduce risks from local government debt are expected to slow economic growth in 2024. The government is helping local governments refinance their off-balance sheet debt, but this is also putting pressure on them to stop issuing additional debt. Economists predict a decrease in net bond issuance by local government financing vehicles (LGFVs) this year, which will likely impact infrastructure investment and GDP growth. The central government may increase support, but it remains uncertain if it can offset the drag from LGFVs. The reduction of local government debt may limit the overall impact of measures to promote economic growth. [Extracted from the article]

Germany's Galeria Karstadt Kaufhof, owned by Signa property and retail empire, has filed for insolvency for the third time in less than four years. The parent company, Signa Holding, had previously pledged €200 million in fresh capital to the struggling chain in exchange for debt write-downs, including €590 million of taxpayer money. Signa's handling of the company has faced criticism for its use of state subsidies and rent increases to boost property valuations. The department store chain was supposed to undergo a restructuring program that would halve its footprint. [Extracted from the article]

Software firm GoTo Group Inc. has reached a framework on a debt exchange deal with a group of lenders. The plan aims to reduce the company's debt while providing tighter protections for participating creditors. The proposal includes $100 million of new money and stricter borrowing covenants on a collateral package to prevent the company from moving assets away from lenders. Lenders who do not consent to the deal will not benefit from the new covenants. The details of the agreement are still being finalized. [Extracted from the article]

RedBird IMI, a media investment firm backed by Abu Dhabi, has decided to delay its acquisition of the Spectator magazine until after a government investigation into its proposed acquisition of the Telegraph newspaper is completed. The firm has an option to exchange debt for ownership of both conservative media titles, thanks to a £600 million loan to the Barclay family. The UK government has ordered an investigation into the potential change in ownership of the Telegraph Media Group to ensure the accurate presentation of news and free expression of opinion in newspapers. Although the Spectator is not explicitly subject to the government probe, RedBird IMI has chosen to hold off on taking control of the magazine. [Extracted from the article]

A group of offshore creditors of China Evergrande Group is demanding controlling equity stakes in the company and its two Hong Kong subsidiaries as part of discussions on a revised restructuring proposal. The creditors are requesting that their debt be swapped for controlling stakes, while Evergrande had previously proposed offering smaller stakes. The outcome of these negotiations is uncertain, and Evergrande faces the risk of a liquidation order if it fails to submit a convincing restructuring plan. The company's original proposal included options for creditors to receive instruments tied to equity in the subsidiaries, which are currently trading as penny stocks. [Extracted from the article]

The purpose of restructuring is to help the Pennsylvania hospital operator "avoid a bankruptcy scenario," said Dora Lee of Belle Haven Investments. [ABSTRACT FROM AUTHOR]

Vietnam Airlines is implementing cost management strategies to reduce expenses by $126 million this year. The airline is focusing on negotiated price reductions, deferred payments, and restructuring loans. Vietnam Airlines acknowledges the challenging global economic and political landscape, with prolonged geopolitical conflicts and high fuel prices. The airline expects the Asia-Pacific region, especially Northeast Asia, to take longer to fully recover in terms of passenger volume. Despite returning to profitability in the first quarter of 2024, Vietnam Airlines still has negative shareholders' equity. The airline plans to expand its routes to Europe and Southeast Asia to increase revenue and adjust flight frequencies in the domestic market to meet demand. Vietnam Airlines also aims to improve efficiency by investing in narrowbody aircraft and converting the configuration of A321 aircraft. The airline is seeking opportunities to negotiate cost reductions and payment postponements with its creditors. Overall, Vietnam Airlines aims to reduce losses, balance revenue and expenditure, and capitalize on the positive signs in Vietnam's macroeconomic outlook. [Extracted from the article]

Finance of America has $350 million of notes coming due next year and wants to trade them for $200 million of secured debt coming due in 2026 and $150 million maturing in 2029. [ABSTRACT FROM AUTHOR]

Vietnam Airlines has reported a net profit of $179 million in the first quarter of 2024, ending 16 consecutive quarters of financial losses. The airline saw a 19% increase in revenue compared to the previous year, reaching $1.17 billion. The forgiveness of lease debt by lessors for its defunct subsidiary Pacific Airlines played a significant role in Vietnam Airlines' return to profitability. Despite this positive development, the airline's shareholders' equity remains negative. Vietnam Airlines carried over 5.74 million passengers in the first quarter, with a load factor of 86% domestically and 80% internationally. The airline currently operates a fleet of 97 active aircraft and has additional orders for 787-10s and 737 Max aircraft. [Extracted from the article]

The article explains the difference between public distribution and direct or private placements for corporate financing in the United States. Security flotation involves more uncertainties about market conditions than private placement financing. The trend is toward private placement because of the uncertainty in public markets, registration restrictions set by the Securities and Exchange Commission, opportunity for full disclosure of information as well as specific terms defined in the debt agreement, and lower cost. Topics include the advantages of marketing debt securities through private channels and public flotations where direct placement is a good alternative. Examples are General Motors Acceptance Corporation and Idaho Power Company.

Chinese municipal debt, which was identified as the region's top financial risk, has turned into a lucrative investment opportunity. Short-term bonds issued by China's local government financing vehicles (LGFVs) have rallied throughout the year, with yields falling for 20 consecutive days. Beijing's support for LGFV securities, through new loans and a debt swap program, has boosted the $9 trillion market and eased concerns of a systemic blowup. While demand for LGFV bonds has surged, investors remain cautious about the long-term financial health of these entities. [Extracted from the article]

Egypt's foreign minister, Sameh Shoukry, has denied claims that the US and Israel offered debt relief in exchange for Egypt accepting Palestinians fleeing Gaza. Shoukry stated that Egypt is working with international partners to secure the release of Israeli hostages held by Hamas militants in Gaza. Egyptian officials have consistently rejected the idea of relocating Gazans to the bordering area of North Sinai, citing security concerns and the potential harm to Palestinian aspirations for statehood. Egypt, facing a severe economic crisis, spends a significant portion of its GDP on interest payments. [Extracted from the article]

Brazilian retailer Americanas SA has released long-delayed financial reports, revealing a fraud of 25.2 billion reais ($5.2 billion) as of the end of 2022. The company sank into bankruptcy protection earlier this year due to a massive accounting scandal stemming from supply chain financing and false advertising contracts. Americanas' shareholders, including billionaires Jorge Paulo Lemann, Marcel Telles, and Carlos Sicupira, have proposed a debt restructuring deal that involves swapping bank debt for equity and receiving a 12 billion-real capital injection. The company's recovery plan aims to reduce total debt to as low as 1 billion reais by 2025. [Extracted from the article]

(Bloomberg) -- WeWork Inc.'s first appearance in bankruptcy court on Wednesday will kick off a months-long debate about how creditors should divide the remains of a once high-flying company that can't afford to repay the more than $4 billion it borrowed. So far, court papers show that billions of dollars of the co-working firm's debt will be converted into equity, while nearly all shareholders and owners of low-ranking bonds will be wiped out. Holders of WeWork's credit line, first-lien notes and second-lien notes will swap their debt for stock in the reorganized company, according to court papers. [Extracted from the article]

(Bloomberg) -- The Credit Suisse executive who built an ESG debt-swap market that's now attracting some of the world's biggest banks has secured a senior role within UBS Group AG, according to an internal memo seen by Bloomberg. Issa's appointment signals that Credit Suisse bankers can win top roles at the combined bank if they have expertise that UBS sees as useful. [Extracted from the article]

(Bloomberg) -- A proposed deal to restructure one of the largest piles of US distressed debt is drawing ire from creditors who have been left out of the transaction. That group, which agreed to the deal by Oct. 31 and holds the bulk of Level 3's debt, can essentially determine which other creditors can be involved in the deal, and how restructuring terms may be revised, the people said. [Extracted from the article]

(Bloomberg) -- China Evergrande Group has proposed a new debt restructuring plan for offshore bondholders, Reuters reported, citing two people familiar with the matter. Evergrande's legal representative said at a Hong Kong court hearing Monday that the builder will look to use shares of China Evergrande New Energy Vehicle Group Ltd. and Evergrande Property Services Group Ltd. as key components in any further debt-restructuring attempts. [Extracted from the article]

Party Control "Large state-owned financial institutions will likely acquire more market share in the financial sector", said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. Economists have long argued that China's government debt is excessively concentrated at the local level. [Extracted from the article]

China kicked off a 1 trillion yuan ($137 billion) debt swap program in late September, allowing local governments to replace their so-called "hidden" debt for bonds carrying lower interest rates. (Bloomberg) -- China said it will set up a system to resolve debt risks of its local governments, as state leaders and top bankers wrapped up a two-day, closed-door meeting to set the priorities for the $61 trillion financial sector. [Extracted from the article]

(Bloomberg) -- WeWork Inc. and its creditors are locked in discussions over who will take the keys to the struggling co-working firm as the end of a debt grace period approaches, according to people with knowledge of the matter. WeWork's top backers including SoftBank Group Corp. and bondholders including King Street Capital Management are each seeking to take control of the company via a new restructuring after pouring money into the firm, said the people, who asked not to be identified because the discussions are private. Representatives for WeWork, SoftBank, King Street and BlackRock declined to comment, while Brigade didn't respond to requests seeking comment. [Extracted from the article]

It's one of roughly five countries that EIB, the world's biggest multilateral lender, is currently in discussions with around such deals, according to Markus Berndt, acting managing director at EIB Global. (Bloomberg) -- The European Investment Bank is in advanced talks with Barbados for a debt swap, marking the lender's first foray into a product that's designed to draw private creditors into markets they wouldn't normally touch. [Extracted from the article]

Read more about Sri Lanka: Sri Lanka Wins Initial IMF Approval for $330 Million Payout Sri Lanka Bondholders' Proposal Sees Government Pushback Sri Lanka, China Agree to Restructure $4.2 Billion of Debt ©2023 Bloomberg L.P. (Bloomberg) -- Sri Lanka's official creditors will submit a debt restructuring proposal "very soon", according to a person with knowledge of the matter. [Extracted from the article]

As part of the exchange offer, Activision will be soliciting consents from eligible bondholders "to adopt certain proposed amendments" to the existing bond that will get rid of certain covenants, restrictive provisions and events of default, according to the release. (Bloomberg) -- Microsoft Corp. has kicked off an exchange offer for Activision Blizzard Inc.'s outstanding debt as part of its acquisition of the game and entertainment software company. [Extracted from the article]

"The additional liquidity injection aims to maintain stable interbank liquidity conditions amid rising LGB debt swap bond issuance, as well as stronger liquidity demand during tax payment times", said Becky Liu, head of China macro strategy at Standard Chartered Bank, referring to local government bonds. (Bloomberg) -- China's central bank is making the biggest medium-term liquidity injection since 2020, stepping up efforts to support the nation's economic recovery and debt sales. [Extracted from the article]

Interest rates on the money market in Ghana have continued to rise, indicating a higher cost of domestic debt. The Bank of Ghana has reported that interest rates have increased across the yield curve. The yield on the 364-day bill is now at 31.65%, while the 91-day bill is at 27.36% and the 182-day bill is at 28.71%. Despite the higher rates, the government has achieved a 15.10% oversubscription of the treasury bills target, with all bids for the auction being accepted. The 91-day bill received bids of about S2.63 billion, the 182-day bill received bids of little over S650 million, and the one-year bill received bids of S237.08 million. [Extracted from the article]

Economist Professor Godfred Bokpin has criticized the government for not reducing fiscal expenditure during Ghana's debt sustainability crisis. He believes that the government is still spending as if there is no crisis and that this approach is detrimental to nation-building and the financial markets. Prof. Bokpin also expressed concern about the lack of consultation with bondholders regarding the reopening of the Domestic Debt Exchange Programme (DDEP). He suggests that if creditors had united and negotiated from a position of strength, the government would have conducted itself better. The government has reopened the DDEP to allow holders of domestic bonds and notes to participate in the exchange. [Extracted from the article]

Ghana, which has the highest borrowing rate from the IMF in Africa, is seeking to restructure its debt through a program called DDEP REOPENING. The government aims to reduce its debt-to-GDP ratio by restructuring about S13 billion. However, there is resistance from pensioner bondholders, individual bondholders' forums, and the Bankers Association of Ghana, who are calling for exemptions or complete exemption. The IMF advises countries to approach debt restructuring carefully and transparently, and to consider the potential impact on the domestic financial system. They also emphasize the importance of addressing the underlying problems and vulnerabilities that led to the debt stress. [Extracted from the article]

Bloomberg reported earlier that Beijing will allow provincial-level governments to raise about 1 trillion yuan via bond sales to repay the debt of local-government financing vehicles and other state-owned off-balance sheet debt issuers. "This means that this year's special refinancing bond issuance has officially kicked off", Huachuang Securities analyst Zhou Guannan said, adding that the program will help resolve debt risks in areas with high debt pressure, and more issuances will follow. (Bloomberg) -- China has begun a program to allow local governments to swap so-called "hidden" debt for bonds carrying lower interest costs, as it seeks to defuse risks from $9 billion of off-balance sheet borrowing. [Extracted from the article]

"This means that this year's special refinancing bond issuance has officially kicked off", Huachuang Securities analyst Zhou Guannan said, adding that the program will help resolve debt risks in areas with high debt pressure, and more issuances will follow. Bloomberg reported earlier that Beijing will allow provincial-level governments to raise about 1 trillion yuan via bond sales to repay the debt of local-government financing vehicles and other state-owned off-balance sheet debt issuers. (Bloomberg) -- China has begun a program to allow local governments to swap so-called "hidden" debt for bonds carrying lower interest costs, as it seeks to defuse risks from $9 billion of off-balance sheet borrowing. [Extracted from the article]

A spokesperson for HSBC said the bank isn't currently working on a specific transaction, but is exploring ways to provide capital support in dialogue with groups such as IUCN. (Bloomberg) -- Citigroup Inc., BNP Paribas SA and Standard Chartered Plc are among the banks looking into providing financing for a new $15 billion program to protect Indian ocean habitats. [Extracted from the article]

(Bloomberg) -- Bond deals arranged by Credit Suisse and Bank of America Corp. in connection with debt swaps for emerging-market issuers are facing renewed scrutiny, after the International Capital Market Association issued new labeling guidelines. The blue bonds arranged by Credit Suisse and Bank of America were sold before ICMA had set clear standards around how to label such instruments. [Extracted from the article]

Alecta AB, a Swedish pension fund that holds blue bonds issued in connection with a swap for Belize arranged by Credit Suisse, doesn't include the investment in its disclosures on green bonds. (Bloomberg) -- Bond deals arranged by Credit Suisse and Bank of America Corp. in connection with debt swaps for emerging-market issuers are facing renewed scrutiny, after the International Capital Market Association issued new labeling guidelines. [Extracted from the article]

(Bloomberg) -- Ghana says it now expects to reach an agreement on debt restructure with eurobond holders by the end of the year, as talks with bilateral creditors drag on. A deal with the official creditors is necessary to determine the terms of debt reorganization Ghana would propose to the eurobond investors. [Extracted from the article]

Lenders looking to enter the market include Citigroup Inc., HSBC Holdings Plc and Standard Chartered Plc, Bloomberg has previously reported. (Bloomberg) -- Barclays Plc is looking into doing deals in a complex corner of the ESG debt market that was built by Credit Suisse and is now drawing interest from a string of global banks since the Swiss lender's takeover by UBS Group AG. [Extracted from the article]

Lenders looking to enter the market include Citigroup Inc., HSBC Holdings Plc and Standard Chartered Plc, Bloomberg has previously reported. (Bloomberg) -- Barclays Plc is looking into doing deals in a complex corner of the ESG debt market that was built by Credit Suisse and is now drawing interest from a string of global banks since the Swiss lender's takeover by UBS Group AG. [Extracted from the article]

(Bloomberg) -- Ghana's government reopened an offer to exchange loans held by local bondholders for new securities to make its debt more sustainable. Read More: Ghana Revamps $4 Billion in Latest Domestic Debt Exchange "In addition, the government could under certain circumstances prioritise payments on the new bonds over payment on the eligible bonds", the ministry said. [Extracted from the article]

(Bloomberg) -- Sri Lanka expects to forge major deals in its debt restructuring this month as the International Monetary Fund conducts the first review of its $3 billion loan program. After months of delay, Sri Lanka is stepping up efforts to fast-track its debt restructuring to help secure more funds from the IMF and set its economy back on track after it defaulted in 2022. [Extracted from the article]

Read More: Apollo, Pimco Show Creditors Can Play Nice With Carvana Deal Carvana Will Restructure Debt and Sell Stock in Comeback Bid ©2023 Bloomberg L.P. (Bloomberg) -- Carvana Co. has completed its debt restructuring with a majority of creditors agreeing to participate in the deal, slashing about $1.3 billion of debt and saving the company more than $455 million of interest expense annually over the next two years. [Extracted from the article]