Ad Hoc Lebanon Bondholder Group Advocates for Debt Resolution Strategies Amid Economic Turmoil

In March 2020, a formidable collaboration emerged among some of the largest institutional investors holding sovereign bonds issued by the Lebanese Republic. This coalition, known as the Ad Hoc Lebanon Bondholder Group, was formed in response to the country’s escalating financial and economic challenges, which culminated in the government's decision to default on its international debt obligations. Over the past few months, this group has expanded its membership and now represents a significant portion of Lebanon’s bondholders, holding large amounts across all outstanding bond series.

Objectives of the Ad Hoc Group

The primary objective articulated by the Ad Hoc Group since its inception has been to seek a sustainable and equitable resolution to Lebanon's pervasive debt crisis. Their intentions came to life on April 25, 2025, during an introductory meeting held in Washington, D.C. with senior members of the new Lebanese administration, which coincided with the International Monetary Fund (IMF) and World Bank Spring Meetings. The dialogue was constructive and aimed at paving the way for cooperative efforts to address Lebanon's financial woes.

Endorsement of Reform Commitments

The Ad Hoc Group has acknowledged the Lebanese government's recent commitment to developing a comprehensive reform and restructuring program designed to facilitate support from the IMF. They commended the government's progress, particularly the passage of the bank secrecy law within Parliament as a step toward greater financial transparency. The group emphasized the importance of advancing essential reforms, particularly those necessary for the revitalization of the banking sector, which has been a focal point of Lebanon's economic challenges.

Collaborative Approach for Economic Revival

To expedite recovery and restore macroeconomic stability, the Ad Hoc Group calls on the Lebanese authorities to engage with all relevant stakeholders actively. A comprehensive debt restructuring strategy, marked by transparent and inclusive processes, is pivotal for Lebanon. By fostering such collaboration, Lebanon can hope to transcend years of economic turmoil and regain the market confidence required for reaccessing international capital markets.

The dedication of the Ad Hoc Group to work cooperatively with Lebanese authorities and the IMF demonstrates their commitment to achieving timely and holistic solutions to the nation's debt challenges. Their readiness to engage constructively indicates a path forward that involves a shared effort among all parties involved.

Support from Legal and Financial Advisors

To navigate the complexities of Lebanon's financial environment, the Ad Hoc Group has enlisted the services of White & Case LLC and Houlihan Lokey as their legal and financial advisors. This partnership underscores the group's strategic approach to addressing bondholder concerns while seeking durable solutions to Lebanon's fiscal difficulties.

Conclusion

The Ad Hoc Lebanon Bondholder Group’s initiative underscores a significant shift in the approach to dealing with Lebanon's debt crisis. Through commitment to reform, collaboration, and a structured dialogue with the government and financial institutions, there exists a renewed hope for Lebanon's economic future. As the country embarks on this critical journey towards recovery, the involvement of the Ad Hoc Group can be a decisive factor in restoring faith among investors and initiating a pathway to sustainable growth.

For bondholders seeking more information about the group's objectives or discussing recent developments, they are encouraged to reach out to White & Case LLP or Houlihan Lokey at their respective contact emails.