Zambia Creditors Join Forces; Nigeria Pledge

Holders of Zambia’s Eurobonds are squaring up for what is likely to be a complex and lengthy debt-restructuring process. A group of lenders owning about a third of the nation’s dollar bonds, and in contact with another third, have formed a committee to negotiate with the government, Bloomberg News reported. Newstate Partners LLP will advise the creditors, who didn’t disclose who they were. Lazard Ltd. is representing Zambia. Zambia is looking to overhaul as much as $11 billion in foreign debt as part of efforts to unlock emergency funding from the International Monetary Fund. The bonds are trading near 54 cents on the dollar, indicating market expectations that investors will have to waive almost half the face value of their investments. Elsewhere in the region, Nigeria said it will not request a delay on payments on official credit, becoming the largest country to turn down a G-20 initiative. Read more