Bankruptcy Law News

Contrarian, GMO Sue to Bar $17 Billion Ecuador Restructuring (3)

July 30, 2020, 1:33 AM

Contrarian Capital and GMO LLC sued to thwart a bid by Ecuador to restructure $17.38 billion in sovereign debt, calling the government actions “coercive in the extreme.”

Contrarian, a Greenwich, Connecticut-based hedge fund, and Boston-based GMO asked a judge in New York on Wednesday to block the plan, saying Ecuador’s public statements about the restructuring proposal are “designed to deceive and mislead bondholders about the coercive nature” of the tender and exchange offer.

“If the tender offer goes forward based on this false and misleading information, the court will be without power to unscramble the proverbial egg and restore plaintiffs...

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