#None #Bondholders #Ad Hoc Group #Lebanon

Introduction

In March 2020, a collective of some of the largest institutional holders of Lebanese sovereign bonds established the Ad Hoc Group in response to Lebanon's spiraling financial situation and the government's subsequent default on international bonds. Since its inception, the group has aimed to forge a sustainable and fair resolution to the pressing debt issues facing Lebanon.

Ongoing Challenges

The past few years have seen a tragic decline in Lebanon's political, economic, and security landscape, which has hindered any substantial dialogues with Lebanese officials. Despite these setbacks, the Ad Hoc Group remains a crucial forum for coordination among international bondholders. They continue to provide a platform for communication and are committed to constructive engagement with both Lebanese authorities and various domestic and international stakeholders.

Recent Developments

Recent political developments have provided a glimmer of hope. The election of Joseph Aoun as President and the nomination of Nawaf Salam as Prime Minister signal a potential shift in Lebanese governance. The Ad Hoc Group views the prospective formation of a new government as an essential step toward addressing the myriad challenges the country confronts.

Furthermore, the group's attention was drawn to a recent announcement from Lebanon's Council of Ministers regarding the proposed suspension of Eurobond prescription periods until March 9, 2028. The Ad Hoc Group is open to discussions about this suspension with the authorities and aims for broader engagement at the right juncture to navigate the protracted debt default situation.

Invitation for Dialogue

For holders of Lebanon's international bonds interested in learning more about the Ad Hoc Group and their objectives, or to discuss recent developments, White Case LLP serves as the legal advisor for the group. They encourage dialogue and active engagement to foster progress.

Conclusion

While the circumstances remain tough, the commitment demonstrated by the Ad Hoc Group reflects a proactive approach to resolving Lebanon's financial crisis. Their ongoing readiness to engage with new government officials presents a potential pathway to alleviating the challenges posed by Lebanon's debt issues.

For more information, interested parties can reach out to White Case LLP via email: [email protected].