Orrick, Herrington & Sutcliffe LLP

11/15/2023 | Press release | Distributed by Public on 11/15/2023 06:45

Orrick Advises the Bondholder Committee on Groundbreaking Debt Restructuring of the Republic of Suriname’s Eurobonds

Orrick successfully represented the bondholder committee in a precedent-setting restructuring of the Republic of Suriname's Eurobonds. The restructuring resulted in an exchange of Suriname's defaulted bonded debt of about $850 million (including past due interest) into a new bond and an innovative value recovery instrument (VRI).

This restructuring resolves Suriname's debt default in a manner that provides significant cash flow and debt stock relief to support the country's economic recovery. In particular, the debt relief will help facilitate Suriname's capacity to safeguard social spending, which will be a factor in fostering inclusive, sustainable growth. The terms of the restructuring recognized that the economic prospects of Suriname are at a transformational turning point in light of the advancing development in offshore oil fields. Payments on the VRI will potentially commence once Suriname has improved its payment capacity from prospective oil production. The VRI is structured to ensure that Suriname will benefit from a significant majority of anticipated oil production proceeds while enabling bondholders to receive adequate repayment of their claims in a timely manner.

Orrick's representation of the bondholder committee demonstrates our award-winning sovereign debt restructuring practice and our market-leading reputation for innovation (SeeFinancial Times Top 3 for Innovation for the 7th Year in a Row).

The members of the bondholder committee that Orrick advised are some of the leading emerging market institutional investors: Eaton Vance/Morgan Stanley; Franklin Templeton; Grantham, Mayo, Van Otterloo; Greylock Capital Management and T Rowe Price.

Orrick's cross-practice team included Thomas Laryea, Lorraine McGowen, Sushila Nayak, Klaudia Mach, Rebecca Downes and John Narducci.