Iraq Reopening Commercial Debt Settlement Offer
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"On 30 January 2008 the Republic of Iraq announced its intention to reopen the debt restructuring program for the reconciliation and settlement of outstanding commercial claims. On 9 December 2004 the Ministry of Finance of the Republic of Iraq posted a request for information, inviting holders of commercial claims against Iraq and Iraqi public sector obligors outstanding as of 6 August 1990 to register and provide information on their claims. The purpose of this request was to reconcile outstanding Saddam-era commercial claims. Between December 2004 and July 2006 approximately USD 19.7 billion of these claims were reconciled and the debt restructuring program was subsequently closed.
In January of this year the program was reopened and holders of commercial claims against Iraq and Iraqi public sector obligors outstanding as of 6 August 1990 are again invited to register and provide information on their claims before the close of business (GMT) on 15 March 2006. The terms of the cash buyback offers, which the Republic of Iraq expects to make later this year, are comparable in net present value terms to those of its November 2004 accord with Iraq’s governmental creditors comprising the Paris Club and similar to the terms of Iraq’s cash buyback offers in the previous debt restructuring program (which was closed in July 2006). Subject to the availability of sufficient funds, the purchase price for reconciled eligible claims held by creditors eligible for the cash buyback will equal 10.25% of the outstanding amount of those claims (including principal and accrued interest).
Although the registration date as set originally during the first reconciliation period was extended several times, we have reasons to believe the deadline of 15 March 2008 will not be extended. The Republic of Iraq seems to have set its mind on restructuring all remaining claims in 2008. Therefore, holders of Iraqi debt are invited to contact us as soon as possible for advice on and assistance with the reconciliation and/or sale of their asset. Omni Bridgeway is also pleased to advise on any inquiry with regard to any applicable national and international regulation. "
Source: Federation of International Traders Association - FITA
In January of this year the program was reopened and holders of commercial claims against Iraq and Iraqi public sector obligors outstanding as of 6 August 1990 are again invited to register and provide information on their claims before the close of business (GMT) on 15 March 2006. The terms of the cash buyback offers, which the Republic of Iraq expects to make later this year, are comparable in net present value terms to those of its November 2004 accord with Iraq’s governmental creditors comprising the Paris Club and similar to the terms of Iraq’s cash buyback offers in the previous debt restructuring program (which was closed in July 2006). Subject to the availability of sufficient funds, the purchase price for reconciled eligible claims held by creditors eligible for the cash buyback will equal 10.25% of the outstanding amount of those claims (including principal and accrued interest).
Although the registration date as set originally during the first reconciliation period was extended several times, we have reasons to believe the deadline of 15 March 2008 will not be extended. The Republic of Iraq seems to have set its mind on restructuring all remaining claims in 2008. Therefore, holders of Iraqi debt are invited to contact us as soon as possible for advice on and assistance with the reconciliation and/or sale of their asset. Omni Bridgeway is also pleased to advise on any inquiry with regard to any applicable national and international regulation. "
Source: Federation of International Traders Association - FITA
06 Mar 2008 07:43
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