Reorg Blog

Guested edited from Hong Kong by Stephen Aldred, Managing Editor, Asia Core Credit || High-yield bonds of some Chinese real estate developers rebounded March 16 after four straight days of selloffs, as official state media outlet Xinhua reported that the country’s top financial policy committee, led by its top economic official Liu He, had vowed to actively support property companies and stimulate the economy. Russia’s invasion of Ukraine, rising commodity prices and rising Covid-19 cases in Mainland China had all accentuated fears of a chaotic collapse in the country’s property market. Debate over whether the selloff was technical or fundamental...

Join Reorg and Partners Fiona Huntriss and Matthew Getz from law firm Pallas LLP as we examine the effect of U.K. and EU sanctions on the obligations owed by borrowers to Russian lenders. We will explore the possible unexpected issues that borrowers might face and flag where non - Russian lenders could also be caught out Thursday, Mar. 24, 11 a.m. GMT *Please register using your business email address. Register here.

The market flags a 50% probability that Sri Lanka will default on its $1 billion 5.875% sovereign debt notes due July 2022. With the maturity dates drawing closer, the Reorg team hosted a discussion of legal and financial considerations ahead of a potential sovereign debt restructuring of Sri Lanka’s existing $12.55 billion bond curve. On this webinar, editor Nidhi Pandurangi moderated a panel discussion with Reorg Asia Core Credit reporter Poonam Bansal, Emerging Market Debt strategist and portfolio manager at Vontobel, Carlos de Sousa and international lawyer and sovereign debt restructuring expert at Orrick, Thomas Laryea. Watch the replay here. 

If you’re not familiar with BSPV-Plano LLC, the company was organized to develop, construct, own, finance and operate a senior living community in Texas called The Bridgemoor at Plano. BSPV-Plano filed for chapter 11 protection on March 1, but construction is not scheduled to complete until this summer. Discussions about how to handle a shortfall of funds to finish construction have not been formalized into a forbearance agreement. Which would yield the highest recovery for bondholders and other creditors – completion of the project or sale? To get the full debt analysis and background, read the full story.

Introduction written from London by Mario Oliviero, Managing Director, International Credit ||  The tragedy of the Russian invasion of Ukraine has thrown European sub-investment grade markets into a new reality. Primary markets are shut to new deals and secondary is rife with volatility. Russia’s economy may be smaller than Italy’s but its progressive isolation from the World economy is going to impact European economies and debt issuers both directly - companies with trade relationships with Russia/Ukraine, and indirectly - supply chain disruptions commodity prices. An increase in commodities prices will impact consumers, bar any Central bank/government extraordinary intervention overall demand will...