G.O.B. Has Not Consulted U.D.P. on Superbond Coupon Extension

Michael Peyrefitte

On June first, the Ministry of Finance issued a press release to say that government was seeking to extend the time of consent solicitation to Friday June eleventh in order to make a Bond coupon payment on October nineteenth.  Today, Senator Michael Peyrefitte told the media that it isn’t unreasonable for G.O.B. to ask for an extension but he wonders what government is doing during that grace period in order to make good on their request. Peyrefitte also noted that the Opposition members have not been invited to help with the super bond although they have offered to help.

Michael Peyrefitte, U.D.P. Senator

“It is not unreasonable to ask for an extension if you believe that you need the time. The question is what changes can you see happening in such a short period of time. Remember when you defaulted on May twentieth it was kind of like a soft default; you have thirty days until it becomes an official default. When it is early like this and everybody – you are far apart and trying to feel out everybody – it is a new government compared to the last one, then you have a lot of tense moments between the bondholders and the government. So, this will go on for a while, I think. The Prime minister had indicated in his budget speech that by May this matter will be wrapped up. I think he is rookie and can’t appreciate what it takes to restructure a bond. But I don’t think it is unreasonable to ask for an extension. If you need the time ask for it. My question is what do you do during that time? And let me say, because people have been asking me about this. I have offered to help the government. I know a lot of the players on the bondholder side, and have offered to kind of be like a bridge between the two sides so that I can familiarize the players with the government and the government with the players; and the government has flatly rejected that and so I want the public to know and I hope you play this in the news that this current process that is going on right here, the U.D.P. has not been asked to be a part of it.”