Suriname Strikes Deal to Remedy $675 Million Bond Default (1)

Suriname reached an agreement in principle with a key group of bond investors to restructure $675 million of defaulted global debt, debuting an oil-linked recovery tool to cap more than three years of negotiations.

Under the agreement, investors holding debt from South America’s smallest nation will accept losses of 25% on their holdings, according to a government statement on Wednesday. In exchange, they’ll get new dollar bonds and a special security that pays out if oil discoveries off the coast make the government cash-rich.

After a trio of Covid-era defaults and years of debate between creditors and officials, it’s a ...